JALA International: 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.

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.

Telework Center Cost-Benefit Sample

Telework Center Cost-Benefit Analysis