Garrick Hyde Consulting’s methodology examines all departmental costs. The chart below shows the hierarchical relationship between analyses, from top (most important) to bottom (supplemental). Our approach is to base all savings opportunities on expenses from the top two levels. Examining FTE hours in the lower levels is appropriate if variances are discovered from the total expense and wage expense analyses. Delving further into skill-mix and wage-rate analyses will provide an important understanding of whether high wage expenses are attributable to too many hours, a “rich” skill-mix, or high wage rates.

Relationship of Analyses