This is a simple sample cost-benefit analysis for an employee in a telework center as seen from the employer's point of view.
[For an analysis of home-based telecommuting click here]
| SAMPLE COST-BENEFIT ANALYSIS FOR A TELEWORK CENTER | (At end of first year of telecommuting) | ||
|---|---|---|---|
| Copyright © 1993-2008 by JALA International, Inc. All rights reserved. Use or reproduction of this file is free for non-commercial purposes. | Assumptions: | Average annual salary is: | $26,000 |
| Telecommuting days/week: | 1.5 | ||
| COSTS TO EMPLOYER per TELECOMMUTER | |||
| DIRECT COSTS | ONE-TIME | RECURRING (Annual) | NOTES |
| Additional Training | $150 | Both telecommuters & supervisors trained | |
| Telecommunications | |||
| — New Installations | $505 | ISDN phone line (2 B+D) and interface card | |
| — Services | $912 | Will vary, depending on need for telecommunications, local tariff structure | |
| Computers | $960 | Telecommuter uses company laptop and docking station. | |
| Moving Costs | |||
| Computer Equipment | $20 | Move from central facility to telework center | |
| Renovation/Installation | $50 | Some employee-specific materials, lock boxes, etc. | |
| Facilities Leasing | $1,440 | Will vary from Telecenter to Telecenter | |
| Furniture Purchase/Lease | $0 | $0 | Included in lease costs |
| Insurance | $0 | Included in lease costs | |
| Equipment Purchase/Rental Costs | $0 | Included in lease cost | |
| Performance Evaluation | $700 | Will vary, depending on level of detail required | |
| TOTAL DIRECT COSTS | $2,385 | $2,352 | |
| BENEFITS TO EMPLOYER per TELECOMMUTER | |||
| DIRECT BENEFITS | |||
| Increased Employee Effectiveness | $3,120 | Average 12% relative to non-telecommuters @ 1.5 days/week | |
| Decreased Sick Leave | $226 | 2 days per year reduction; 230 work days per year | |
| Increased Organizational Effectiveness | $520 | Average about 2% | |
| Decreased Turnover Rate | $1,300 | 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-pooler | |
| Office Space Savings | $3,240 | 150 square feet @ $6/month per square foot proportionally reclaimed | |
| TOTAL DIRECT BENEFITS | $0 | $8,766 | |
| INDIRECT BENEFITS | |||
| Decreased Air Pollution | Put your own number here for compliance with AQ regulations | ||
| Increased Competitiveness> | Put your own number here for the effect of your new productivity | ||
| TOTAL INDIRECT BENEFITS | |||
| ANNUAL NET BENEFITS | $6,414 | ||
| FIRST YEAR NET BENEFITS | $4,029 | ||
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