How are the savings targets calculated?
added 9/23/2010 A. The calculation starts with a unit’s average span of control (number of direct reports divided by the number of supervisors.) Their target span of control is then calculated using a weighted average of task and expertise departments. The number of fewer supervisor positions required to get from the starting point to the target is then calculated. 40% of this number is multiplied by the average supervisor salary fully loaded for benefits which results in the savings target. For example, if a unit has 120 employees and 30 supervisors, their starting span of control would be four. If their target was six, they would need to reach a target of 20 supervisors for 120 employees, requiring the reclassification or elimination of 10 supervisor positions. 60% of these, or six supervisors, would be reclassified as individual contributors. 40%, or four of these positions, would be eliminated. Multiplying four by the average fully loaded salary of supervisors in that unit would yi
