| SAMPLE COST-BENEFIT
ANALYSIS FOR A TELEWORK CENTER |
|
|
(At end of first year
of telecommuting) |
| Copyright © 1993-2004
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 |
|
($2,385) |
