Assessing the effectiveness of cutting employee related costs as a performance measure: a case study of Altfin Holdings Limited

Abstract

The study sought to assess the effectiveness of cutting employee related costs exercised by Altfin Holdings Ltd.It is aligned with the background that operating costs had been increasing and need arose to reduce costs and still maintain a standing in the insurance industry. The scope of the research is to assess the effectiveness of cutting employee related costs on the viability and sustainability of the organization. A review of literature was carried out in order to establish what other authors had to say on the subject. The researcher used these proposed theories as a foundation for field research. The research was a case study in which questionnaires and interviews were used as data gathering instruments. A sample of twenty five respondents was drawn from the entities managers, accountants, clerks, administration personnel, investment analyst and agents. Both primary and secondary data was used and findings denoted through the use of tables, pie charts and graphs. It was established from the theoretical review and results from actual field research that curbing employee related costs results in demotivation of workers. Conclusions were drawn interms of the objectives set out at the beginning of the project, and recommendations were made on which Altfin Holdings Limited may wish to undertake.