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Developing a Budget
Your company's viewpoint regarding telecommuting expenses will depend on the current operating environment and costs and the strategic reasons for adopting telecommuting. While a telecommuting program can require a start-up investment, research indicates that added costs are marginal and the benefits of telecommuting will outweigh costs over time.
Identify Telecommuting Costs
Financial expenses associated with telecommuting are attributed to start-up and continuing expenses. Start-up costs can include feasibility studies, specialized training programs for telecommuters and managers, data security safety measures, and equipment movement and installation. Data security may require costs related to the formalization of safety procedures and installation of software. Equipment costs span items such as computers, a dedicated phone, fax machine, printer and data transmission link (and sometimes office equipment such as ergonomic chairs, files and cabinets).
Communication costs will be on-going and cover items such as phone and broadband charges. Also fold in issues such as responsibility for lost data, theft of equipment, or damage due to power spikes. Also consider program and participant evaluation as a direct cost.
Within certain telecommuting arrangements, a staff member may voluntarily supply his or her own equipment and software. In so doing, the staff member usually assumes responsibility for maintenance and repair costs. Or the staff member may, with the supervisor's and manager's approval, move equipment and software from the office to the telecommuting site. In many instances, however, employers pay the costs of telecommuting arrangements for participating telecommuters.
In the early stages of telecommute program planning, your IT department or a consultant should carry out an IT gap analysis to determine telecommuting infrastructure start-up needs and costs, including ongoing support to telecommuters who rely on computer networks and remote access.
The specifics of your company's program, such as the telecommuting policy and implementation timeline, will determine the rate at which employees must be equipped with hardware and connectivity, which employees receive this support, and the timing of infrastructure investments.
In evaluating your telecommuting program's economic viability, consider measuring cost categories and their identified change. Cost categories would include training, computer hardware and software, maintenance contracts, end user support, furniture and moving, communications, performance evaluation and program administration.
The telecommuting program's desirability will be determined by comparing your total company's costs to benefits. Telecommuting research shows cost reductions or cash-flow improvements in the following areas:
- Office space savings
- Relocation Costs
- Recruitment and Retention
- Productivity
- Absenteeism
- Stress and Work/Life Balance
- Emergency Preparedness
- Regulatory compliance: Clean Air Act, ADA, FMLA
If you have a specific question or need additional information on budget considerations, contact Telecommute Connecticut at tct@telecommutect.com.
