1. One of the major duties of managers is to control expenses. Since labor costs in...

1. One of the major duties of managers is to control expenses. Since labor costs in health care is often 60% or more of total operating costs, discuss management’s role in controlling labor costs, including the use of part-time staff, control of over-time, outsourcing and other methods.

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Expert Solution

The management can control labour costs with the help of various techniques. The cost of part time staff can be substantially lower than the cost of full time staff since most of the part timers are not given retirement benefits. Moreover they can be used as and when required and are not required all the time.

Managers can avoid scheduled overtime costs by avoiding short staffing. Incremental overtime can be avoided by avoiding early punch in and late punch outs. Efficient managers can avoid staffing emergencies such as terminations and call offs. Such emergencies can be planned and filled in by part time employees.

Labour cost can be significantly reduced by Outsourcing to other places or countries where the labour cost is lower. That would depend on the type of function which is required to be outsourced.

Managers can also reduce the labour cost by implementing cross training. This would allow the employees to fill in for each other in case of emergency along with adding on to their skills

jeff jeffy answered 2 years ago

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