Overstaffing is a relative concept. The issue is motivation and affordability rather than staff numbers. Comparisons with GDP and population are useful only as guides to judgment. Pensions should be considered at the same time as current year wage bill costs as the net present values of pensions can be a significant motivator. See Pension Arrangements .
Pensions can act as an incentive for staff to remain in otherwise underpaid jobs.
Additionally, savings from retrenchment might need to be significantly offset by the costs of continuing pension liabilities. This page was prepared by Ismail Radwan of PriceWaterhouseCoopers.