Personnel Impacts – In-Person vs. Remote Mega-Analysis

In-Person vs. Remote Mega Analysis:
Personnel Impacts

3m Video

Modeling College and University Faculty, Staff, and Salary Changes

In the third video of Synario’s In-Person vs. Remote Mega-Analysis, we will cover how personnel changes for in-person v remote teaching scenarios can impact your institution’s operating margin.

As described in the video, personnel impacts arise from three different areas: faculty and staff headcount changes, salary growth changes, and a PPE expense. After the personnel analysis is complete, we layer in auxiliary and student impacts discussed in the previous two videos.

Why Does an In-Person vs. Remote Scenario Analysis Matter to Higher Education?

This is the biggest question facing higher education right now. Many financial leaders are asking themselves, “how would an in-person teaching scenario affect our financials versus moving to remote semesters for 2021 and 2022?"

Through this analysis series, we are hoping to help college and university decision-makers analyze and understand how the various impacts associated with these two scenarios can be modeled.

The Synario financial modeling software is ideal for this type of analysis, as it can layer in each micro-scenario and initiative independently, allowing finance professionals to explore their outlook faster than any other modeling software.

Video Transcript

Welcome to the second video of our in-person vs. remote mega-analysis, where we examine how higher education institutions could model the various aspects of in-person vs remote teaching scenarios.

In this video, we’ll show how Synario can model personnel impacts for both in-person and remote teaching scenarios.

– In-Person Scenario –

Here you can see we have our operating margin displaying our baseline projection until 2030. This projection shows what our operating margin would look like without the impacts of COVID-19.

Let’s first examine the in-person scenario. This scenario is composed of three components: Faculty and Staff Changes, Salary Changes, and a PPE Expense.

By looking in our initiative builder at the bottom, we can see that we have a small decrease in adjunct faculty members, staff, and student employees for fiscal years 2021 and 2022, with employees returning in the year 2023.

Since we have a small decline in faculty and staff, expenses associated with benefits will also decline. Additionally, this scenario incorporates a decrease in salary growth, which can be seen in the value chart editors to the right. Salaries have a 1% growth rate through fiscal years 2021 and 2022, compared to a 2% growth rate in the baseline scenario those two years. Then a large percentage increase in 2023 to keep salaries competitive, followed by a slow return to 3% over the next few years.

Lastly, we have added a small expense to this scenario to provide faculty and staff with PPE equipment for in-person teaching, seen as an on/off toggle in our in-person scenario button.

– Remote Scenario –

Moving to our remote scenario, we can immediately see that this has a much larger positive effect on the operating margin. In this scenario, we have set our initiative builder to show a larger decline in faculty, staff, and student employees in fiscal year 2021 and 2022. The remote scenario also includes a complete salary freeze for fiscal year 2021 as compared to the in-person scenario.

Similar to our last video, we are now going to layer in all of our previous micro-scenarios and initiatives related to student and auxiliary impacts. By clicking on my remote macro-scenario, I can turn on each micro-scenario and initiative, then see the operating margin graph update automatically.

Moving to the in-person scenario, we can turn on our in-person auxiliary and student impacts, then select the in-person scenario on the operating margin graph to see our new financial projection.

By turning off the micro-scenario and initiatives associated with our personnel impacts, we can see that our in-person personnel and salary growth changes actually save our operating margin from dropping below zero.

Finally, I can view the financial difference between the two complete scenarios on my full financial statements using Synario’s integrated financial statements report. Here we can see that the remote scenario has a much more negative outlook than the in-person scenario, mostly coming from the larger decrease in auxiliary revenue.

That’s it for this video. Stay tuned for our next video where we will layer in federal funding, endowment returns, and charitable giving to give us a more complete financial projection.

As usual, if you would like us to cover a different topic, reach out to us by emailing info@synario.com.