This is a simple sample cost-benefit analysis for home-based telecommuters
as seen from the employer's point of view.
[For an analysis of telework center-based telecommuting click here] The example shows the main factors that should be considered if you are a manager analyzing the potential of teleworking for your business—or if you are a teleworker hoping to convince management to allow you to telework from home.
If you wish to try this analysis using your own data click here.
|SAMPLE COST-BENEFIT ANALYSIS FOR HOME-BASED TELECOMMUTING||(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:||$40,000|
|COSTS TO EMPLOYER per TELECOMMUTER|
|DIRECT COSTS||ONE-TIME||RECURRING (Annual)||NOTES|
|Selection and Training||$175||Both telecommuters & supervisors trained|
|—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|
|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|
|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|
|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|
|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|
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Last modified: Monday September 26, 2011.