Telework Center Cost-Benefit Sample

Telework Center Cost-Benefit Analysis

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]

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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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Last modified: Monday September 26, 2011.

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