Quantify how quickly workforce cost can follow a change in demand once productivity, attrition, permanent-workforce lead time, severance, flexible labor, and committed hiring are carried through the same operating horizon.
About this interactive
The analysis converts demand and productivity into a required core FTE level, then follows the cost response month by month. Expected attrition can absorb part of a surplus before managed action; permanent-workforce cost moves only after the entered action lead time and severance; overtime and external labor follow separate reduction assumptions and timing lags; planned hires are separated between capacity-supported roles and already-committed roles outside the requirement. The result isolates recurring transition cost, restructuring cash, end-state run-rate alignment, and any remaining capacity gap. No external workforce benchmark is imposed. For more information, visit our labor cost optimization consulting page.
Cost response over time
The projected recurring cost path reflects attrition, managed core action, flexible-labor timing, and committed hiring. The demand-supported line shows the recurring level implied by the entered capacity and flexible-labor response. Severance appears separately as transition cash.
Commitment timing
Permanent workforce, flexible labor, and planned hiring do not move on the same timetable. The component view separates the recurring cost that remains because of those timing and commitment differences.
End-state position
The end-state comparison separates the demand-supported recurring run rate from the projected run rate that still carries entered commitments or an unfilled capacity requirement.
What the interactive shows
WORKFORCE COST ANALYZER: ILLUSTRATIVE DEFAULT RECORD INPUTS Annual workforce cost: $12,000,000 Current core FTE: 150 Demand change: -10.0% Productivity change: +3.0% Minimum operating capacity: 85.0% of current core FTE Overtime share of annual workforce cost: 7.5% Overtime reduction under scenario: 60.0% Overtime reduction lag: 1 month External labor share of annual workforce cost: 5.0% External labor reduction under scenario: 80.0% External labor notice / adjustment lag: 2 months Expected annual attrition: 10.0% Core workforce action lead time: 4 months Severance: 1.5 months of core cost per managed reduction Planned hires: 12 Share of planned hires already committed: 25.0% Planned hire start month: Month 3 Review horizon: 12 months COMPUTED POSITION Core annual workforce cost: $10,500,000 Annual core cost per FTE: $70,000 Demand-supported core FTE requirement: 131.1 Current core FTE surplus: 18.9 Expected attrition absorbing surplus before managed action: 4.9 FTE Managed core reduction after lead time: 14.0 FTE Severance cash: $122,449 Capacity-supported planned hires: 0.0 Committed planned hires outside required capacity: 3.0 Cancelable planned hires outside required capacity: 9.0 Horizon recurring workforce cost: $10,324,193 Horizon workforce cash cost including severance: $10,446,642 Recurring savings versus maintaining the current run rate: $1,675,807 Net horizon savings after severance: $1,553,358 Recurring transition cost above the demand-supported run rate: $669,436 Demand-supported annual run rate after entered reductions: $9,654,757 Projected annual run rate at horizon end: $9,864,757 Annualized run-rate gap at horizon end: $210,000 Committed unsupported planned-hire cost inside horizon: $175,000 Base workforce and flexible-labor alignment: Month 5 Unfilled core FTE requirement at horizon end: 0.0 FINDING The entered demand and productivity changes reduce the demand-supported core requirement from 150 to 131.1 FTE. Expected attrition absorbs 4.9 FTE before managed action, leaving a 14.0-FTE managed reduction after the 4-month lead time and $122,449 of severance cash. Overtime and external-labor timing, retained core capacity, and committed unsupported hires create $669,436 of recurring cost above the demand-supported run rate across the 12-month horizon. The projected annual run rate ends $210,000 above the demand-supported run rate because 3.0 already-committed hires remain outside the required capacity. METHOD STATUS Management-entered assumptions. Core annual cost equals total annual workforce cost less the entered overtime and external-labor shares. Required core FTE equals the greater of demand-adjusted FTE divided by the productivity factor and the minimum operating-capacity floor. Expected attrition reduces surplus core FTE monthly before the managed-action date and stops at the required FTE level. Any remaining surplus is removed after the entered core action lead time. Severance equals managed reductions multiplied by monthly core cost per FTE and the entered severance months. Overtime and external labor move to their entered reduced levels only after their separate timing lags. Planned hires needed to fill a capacity shortfall are treated as supported; already-committed hires beyond that shortfall enter the cost base from the entered start month, while uncommitted unsupported hires do not. No external labor benchmark, statutory severance assumption, or hidden score is used.
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