Specific Options for Reducing Staffing Costs
This is part of the Reduction Committee Tasks.
Targets
Target #1 = $2,700.
Target #2 = $5,400 (including target #1).
Recommendations for target #1
- 5% pay cut
- $1,162.58 per month savings effective March 1 (retroactive)
- Unpaid leave for Laurel and Nathan in March (during vacation)
- $598.95 for the month of March only
- Marlin layed off
- $943.80 per month savings which don't kick in until vacation pay is paid off (June or so)
- Other staggered voluntary leaves of absences
- $696.96 Laurel in April
- $1,510.00 Jhasen in May
- $1,510.00 Liane in June
- $1,510.00 Martin in July
- Voluntary hours reductions already scheduled
- $377.52 Rick dropping to 20 hours May and beyond
- Geiner leaving
- $1,226.80 per month when it starts, assuming we add 12 hours to Michael's schedule and get him to split time between printers and tech support
Month by month this breaks down like:
March | $1,761.53 |
April | $1,859.54 |
May | $4,276.90 |
June | $5,220.70 |
July | $5,220.70 |
August | $3,710.70 |
6 MONTH TOTAL: | $22,050.07 |
MONTHLY AVERAGE: | $3,675.01 |
This leaves us around $2,300 short of the round 2 target. To make this up in hours reduction, we'd need to cut an additional 46 hours from the schedule which would mean another layoff and hours reduction for remaining collective members. Since covering all available shifts will already be strained, this would mean cutting back programs of some sort. We're not offering recommendations for this extra $2,300 -- just the options.
Weaknesses of these recommendations
- Cuts don't kick in fast enough
- March and April don't meet the $2,700 round 1 target. It is not until May that we see the full savings. This could change significantly if Geiner leaves earlier than expected. (If Rick cuts his hours in April -- rather than May as assumed -- we could be closer to the $2,700 target in April, but we'd still be around $463 short.)
- Some cuts are based on temporary measures.
- The average cut is $3,675 (well over the target), but $944 of that comes from voluntary leaves, which are temporary by nature. If income is flat, that would leave us around $30 short of the $2,700 target in the long run.
- There's a lot of work to be covered by less people.
- With Geiner gone, Rick's hours reduced, and Marlin laid off, we've cut 48 hours from the weekly schedule that will need to be picked up by other staff (even assuming we add 12 hours somewhere to help cover printers). We will need to try to make things more efficient, recruit volunteers to do more work, etc. to counteract this. All of this will need to go on while we figure out a way to address the underlying problem of needing to increase income.
Across the board wage cut
A 5% wage cut would save us $1,162.58. We spend $23,251 / month on non health care benefits. Cutting more than 5% would make it difficult for some people on staff to make pay for rent, bills, and food.
Voluntary hours cuts
Monthly cost of collective member/hour/week = $47.19.
The following people have offered voluntary hours cuts:
Dave | 1.75 | x$47.19 | $82.58 |
Geiner | 7 | x$47.19 | $330.33 |
Jhasen | 10 | x$47.19 | $471.90 |
Jon | 12 | x$47.19 | $566.28 |
Laurel | 4.5 | x$47.19 | $212.36 |
Liane | 4 | x$47.19 | $188.76 |
Martin | 10 | x$47.19 | $471.90 |
Michael | 5 | x$47.19 | $235.95 |
Rick | 6 | x$47.19 | $283.14 |
Shawn | 8 | x$47.19 | $377.52 |
Subtotal | 68.25 | x$47.19 | $3,220.72 |
Matthew | 5 | x$34.30 | $171.50 |
TOTAL | $3,392.22 |
Calculations
- Total non health care cost for staff in January 2005: $23,251.18.
- Intern cost: $1,443.90 (6.21%)
- Collective cost: $21,807.28 (93.79%)
- Total staff hours worked per week: 479
- Intern hours: 40
- Collective hours: 439
- Cost per hour: $48.54
- Cost per intern hour: $36.10
- Cost per collective hour: $49.67
- Cost per hour after 5% wage reduction: $46.11
- Intern: $34.30
- Collective: $47.19
Voluntary unpaid leaves of absence
The following people have offered voluntary leaves of absence:
Nathan | 15 hours in March | $163.35 |
Laurel | 40 hours in March | $435.60 |
Laurel | 64 hours in April | $696.96 |
Jhasen | 1 month (May) | $1,510.00 |
Liane | 1 month (June) | $1,510.00 |
Martin | 1 month (July) | $1,510.00 |
TOTAL | $5,825.91 |
Calculations
- Health and Dental cost: $283.00
- 32 hour collective member with health care = $1,793.08
- 32 hour collective member without health care = $1,510.08
- 20 hour collective member with health care = $1,226.00
- 20 hour collective member without health care = $943.80
- 20 hour/week intern = $686.00
Job performance based cuts
Job performance of all staff members was considered to the best of our ability. This proved difficult without a complete set of job reviews. It is more likely to play a part in round 2 of the cuts (should round 2 be needed).
Program and job function based cuts
Here is a partially filled out grid of essential jobs at Free Geek. Most of the numbers are based on obvious job descriptions and the current version of the schedule.
- 5 -- A main part of current job
- 4 -- Part of current job
- 3 -- Used to do / Fills in occasionally
- 2 -- Easy to learn in < 1 month
- 1 -- Hard to learn in < 1 month
- 0 -- Not practical
Only the 5s and the 4s are included on the grid. A more complete grid would give us a better picture.
Marlin and Geiner (both of whom are leaving) are separated out and not included in the bottom totals.
Jobs with low totals at the bottom are in need of more people who are capable of doing them. The people who currently do them would cause more problems if laid off.
Likewise, people with low number on the right are in need of cross training since they are currently unable to cover a wide variety of jobs if there were a layoff.
Marlin | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 10 |
Geiner | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 4 | 0 | 0 | 13 |
Action | C7 | HR | Kbees | Outreach | Reuse | Technocrats | ||||||||||||||
Name | Fork Lift | Recycling | Bookkeeping | StaffSched | Adoption | Tech Support | Reception | Fundraisers | Grantwriting | Command Line | AdvTesting | BlackWhiteHole | Build | PB/BBBB | Printers | ReceivTesting | Store | InfrastrMaint | SWMaint | Totals: |
Clout | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 13 |
Dave | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 4 | 0 | 5 | 5 | 0 | 0 | 0 | 5 | 0 | 24 |
Jhasen | 5 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10 |
Jon | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 10 |
Kathie | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
Laurel | 0 | 0 | 0 | 0 | 5 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 13 |
Liane | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 4 | 0 | 4 | 0 | 0 | 0 | 12 |
Martin | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 4 | 0 | 5 | 5 | 0 | 0 | 0 | 5 | 5 | 29 |
Matthew | 0 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 4 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 13 |
Michael | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
Nathan | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 5 | 4 | 4 | 0 | 0 | 0 | 0 | 0 | 17 |
Oso | 0 | 4 | 5 | 0 | 0 | 0 | 0 | 4 | 5 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 22 |
Richard | 0 | 0 | 0 | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 5 | 0 | 4 | 0 | 5 | 5 | 28 |
Rick | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 5 | 0 | 0 | 9 |
Shawn | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 0 | 12 |
Totals: | 10 | 9 | 5 | 5 | 9 | 5 | 18 | 8 | 5 | 10 | 28 | 5 | 26 | 31 | 0 | 13 | 10 | 15 | 10 | 222 |
Voluntary Leaves of Absence Scenarios
Jhasen takes off May
- Savings $1,584 (one time)
- Shuffling people around
- Oso, Liane, Shawn, Laurel, and Richard could all cover (some need training)
- Matthew (would require Front Desk coverage)
- Jon (receiving)
- Nathan (Black Hole)
Liane takes off June
- Savings $1,584 (one time)
- Shuffling people around
- Computers for Kids on hold
- BBBees and PB/BBBB needs coverage
Martin takes off one month
- Savings $1,450 (one time)
- Shuffling people around
- Oso or Liane could cover
- Matthew could cover (Reception affected)
- Nathan (Black Hole)
Laurel takes some time in April
- Savings $800 (one time)
- Shuffling people around
- Adoption classes, LPI exams
- Potential education income stream might get postponed
Voluntary Hours Reduction Scenarios
Calculated based on the assumption that the above recommendations are taken and in effect.
Jhasen goes to 22 hours
- Savings $503 / month
- Shuffling people around
- (see above)
Jon goes to 20 hours
- Savings $604
- Shuffling people around
- BBBees coverage needed
- Forklift operation (Jhasen and maybe Oso)
Martin goes to 20 hours
- Savings $453 / month
- Shuffling people around
- (see above)
Rick goes to 20 hours
- Savings $402
- Shuffling people around
- Dave, Martin, Richard
- Oso, Liane, Shawn, Michael, Nathan
Shawn goes to 24 hours
- Savings $402
- Shuffling people around
- PB/BBBB and Reception
- Event coordination and volunteer outreach would suffer
Many people take off 3-4 hours
- Savings $151-201 per person
- $1,208-$1,610
- People affected: Liane, Laurel, Michael, Jhasen, Jon, Martin, Rick, Shawn
- Shuffling people around
- (too complex to detail)
Layoff Scenarios
Calculate these based on the assumption that the above recommendations are taken and in effect.
Geiner Leaves
- Savings $1,867
- Shuffling people around
- Someone needs to be trained to cover printerland.
- Front Desk coverage needed.
No Intern in Store
- Savings $700
- (see above)
No Intern at Front Desk
- Savings $700
- Coverage at front desk needed.
Layoff Dave
- Savings
- Shuffling people around
- Hardware Grants, Store and Advanced Testing, Build, Hardware Infrastructure, Distro development, system admin all affected.
Layoff Jhasen
- Savings
- Shuffling people around
- (see above)
Layoff Jon
- Savings $1,867
- Shuffling people around
- (see above)
Layoff Kathie
- Savings
- Shuffling people around
- Front desk coverage, orientation of data entry of other volunteers.
Layoff Laurel
- Savings
- Shuffling people around
- Adoption classes, documentation, LPI classes, growing the education program, PB/BBBB all need coverage, plus the queen knowledge bee would need to be replaced.
Layoff Liane
- Savings
- Shuffling people around
- PB/BBBB, BBBees, Front Desk, build. No CforK mainstay.
Layoff Martin
- Savings
- Shuffling people around
- Hardware Grants, Store and Advanced Testing, Build, Hardware Infrastructure, Advanced build teaching, software development all affected, GAP box maintenance, system admin.
Layoff Michael
- Savings
- Shuffling people around
- No tech support, distro affected, research of software systems and things like credit card system.
Layoff Nathan
- Savings
- Shuffling people around
- Potential future Homestreet income, Black Hole/White Hole and offbeat hardware, phone and network cabling, build, PB/BBBB, Front Desk backup person.
Layoff Oso
- Savings
- Shuffling people around
- Bookkeeping, grantwriting, build, recycling, invoicing, events, media, physical plant development, etc.
Layoff Richard
- Savings
- Shuffling people around
- Scheduling, database development, coder oversight, general organizational and financial development, PB/BBBB, GAP box maintenance, policy development.
Layoff Rick
- Savings
- Shuffling people around
- Store, store testing.
Layoff Shawn
- Savings
- Shuffling people around
- Intern management and recruitment, PB/BBBB, events, Front desk, documentation, policy development, groups volunteering, community service volunteers.