Strategy · HR glossary

Workforce Cost Optimisation

Workforce cost optimisation adjusts staffing, work design and spending to achieve required outcomes with suitable resources. It considers value and service needs rather than simply reducing employee numbers.

Example

A company reduces avoidable agency spending by improving shift planning and training internal staff to cover predictable peaks in demand.

What to keep in mind

Include quality, safety and long-term capability in the decision. A short-term saving can be offset by errors, burnout, lost knowledge or higher replacement costs if essential capacity is removed.

Further reading

← Browse all HR terms