Cost Reduction Efforts

Hi BreAnn and Happy New Year - Below are answers to your questions:

1. Historically, yes - primarily VRP/VSP. Going forward the intent is to do this very rarely. 
2. Limited backfills are allowed and typically require approval by senior leadership. 
3. There's no waiting period if senior leadership of the organization approves the backfill. 
4. Our tactical workforce planning process establishes cost targets for each of our senior officers and their staff members - which can include reductions. 
5. Same answer as #4. 

Let me know if you have questions!
Amy

Hi BreAnn - 

Not much meat from us, but here are answers from ILG:

1. Yes, we conduct RIFs to help with cost control (especially recently). We are just getting into year 2 of centralizing our business so we are learning as we go how to better budget, plan, and use the workforce in order to set us up in a better position to do these much less frequently.

2. Ideally, we do not allow backfills for eliminated positions due to RIFs. However, as we establish new processes and rules, this has been volatile. Moving forward, if we were to need a backfill for an eliminated position, it would need our workforce council and Executive Leadership approval.

3. No waiting period if approved.

4. We have a team in place that is working on operating model and org structure and through them we monitor every cost reduction and track it.

5. N/A

Scott

Hi BreAnn, my answer below and I'm happy to discuss any further if you like.

1. Does your company do VRP, VSP, or RIF programs to control cost? Yes we conduct RIFs to control costs when necessary.
2. Do you allow backfills for the roles that are vacated with these programs? Yes, some roles are replaced as talent upgrades, at lower grades or in lower cost locations. There are a few allowed reasons but most are not backfilled.
3. If so, how long do you require the roles to be vacant before being backfilled? No minimum waiting period.
4. If your company uses these programs, what other mechanisms do you put in place to maintain the cost reductions? Good question - I think in the short term, the tracking and reporting toward target reduction works fine. Longer term however gets more challenging. We're going through a RIF right now and in the middle of that implemented position management, which gives us much more control over unintended headcount and cost growth as a company. We plan to use that as a more centralized and systematic mechanism moving forward, along with better linkages between our HR data and Finance spending data. 
5. If you don't use these programs, what are the alternatives you have found to be successful? Have you tried any that haven't been successful?