Throughout the series we have been mentioning that you will have to make trade-offs between the costs of setting up telecommuting facilities and the benefits you gain due to employee satisfaction and cost savings. It is time to discuss an objective cost-benefit analysis, so that you can know what exactly you are getting into, and how it will affect your organization’s financial health.
To help you along, we have included a detailed Cost Benefit Analysis Worksheet which you can make use of. In essence, it will help you record all potential costs you will incur, and balance them against the benefits you may accrue. Some major calculations you may have to make are:
1.Equipment: For each telecommuting employee, there will be the savings against office equipment and furniture, balanced against the cost you may have to incur on providing the equipment at the remote workplace (if you are providing the equipment).
2.Connections: Savings on office LAN will be balanced against connection costs at the remote workplace.
3.Employee Services: Savings on parking, coffee etc balanced against telephone and ISP bills.
4.Employee Insurance: You will have to balance workplace-related insurance against whatever insurance you must arrange for the telecommuting employee and facilities.
5.Real Estate: how much do you save on paying office rentals for each telecommuter?
6.Savings on utility bills.
7.Tax benefits, if any. Some states grant tax reliefs to organizations implementing telecommuting.
Do take your decision based on a detailed cost-benefit analysis. Some intangible benefits are not included, such as employee satisfaction, which you may have to separately consider.
