| SAMPLE COST-BENEFIT
ANALYSIS FOR HOME-BASED TELECOMMUTING |
|
|
(At end of first year
of telecommuting) |
| Copyright © 1993-2007
by JALA International, Inc. All rights reserved. Use or reproduction
of this file is free for non-commercial purposes. |
Assumptions: |
Average annual salary: |
$40,000 |
| |
|
Telecommuting days/week: |
1.5 |
| COSTS TO EMPLOYER per TELECOMMUTER |
|
|
|
| DIRECT COSTS |
ONE-TIME |
RECURRING (Annual) |
NOTES |
| Selection and Training |
$175 |
|
Both telecommuters &
supervisors trained |
| Telecommunications |
|
|
|
New Installations
|
$460 |
|
Phone line and modem
|
Services
|
|
$960 |
Will vary, depending on need for telecommunications,
local tariff structure |
| Computers |
$500 |
$75 |
Cost of docking station, extra monitor, laptop instead
of desktop computer |
| Moving Costs |
|
|
|
Computer Equipment
|
$0 |
|
Usually zero if employee handles this |
Renovation/Installation
|
$0 |
|
Some employee-specific materials, lock boxes, etc. |
| Facilities Leasing |
|
$0 |
Assumes employee reports to principal office on non-telecommute
days |
| Furniture Purchase/Lease |
$900 |
$0 |
|
| Insurance |
|
$70 |
Annual equipment liability
|
| Equipment Purchase/Rental Costs |
$300 |
$0 |
Inkjet printer |
| Performance Evaluation |
$700 |
|
Will vary, depending on level of detail required |
| TOTAL DIRECT COSTS |
$3,035 |
$1,105 |
|
| |
|
|
|
| <BENEFITS TO EMPLOYER per TELECOMMUTER |
|
|
|
| DIRECT BENEFITS |
|
|
|
| Increased Employee Effectiveness |
|
$6,000 |
Average 15% relative to non-telecommuters @ 1.5 days/week |
| Decreased Sick Leave |
|
$348 |
2 days per year reduction; 230 work days per year |
| Increased Organizational Effectiveness |
|
$800 |
Average about 2% |
| Decreased Turnover Rate |
|
$2,000 |
Equivalent to 5% of salary in search and training
costs avoided |
| Reduced Parking Req'mts |
|
$360 |
30% reduction in $100/month space requirements for
non-carpooler |
| Office Space Savings |
|
$3,240 |
150 square feet @ $6/month per square foot proportionally
reclaimed |
| TOTAL DIRECT BENEFITS |
$0 |
$12,748 |
|
| |
|
|
|
| INDIRECT BENEFITS |
|
|
|
| Decreased Air Pollution |
|
|
Put your own number here for compliance with Air Quality
regulations |
| Increased Competitiveness |
|
|
Put your own number here for the effect of your new
productivity |
| TOTAL INDIRECT BENEFITS |
|
|
|
| |
|
|
|
| ANNUAL NET BENEFITS |
|
$11,643 |
Per telecommuter with
these characteristics |
| FIRST YEAR NET BENEFITS |
|
$2,786 |
