Overhead Savings
American companies could add more than $260 billion annually to their bottom lines and consumers could save $228 billion if eligible employees worked from home. (Lister and Harnish)
If eligible workers stayed home, businesses could save more nearly $8,000 annually for each telecommuter. (Lister and Harnish)
Major companies such as, Sun Microsystems saves $70 million annually on real estate thanks to telecommuting initiatives, while Dow Chemical cut costs other than real estate by 33% by promoting telecommuting initiatives. (Lister and Harnish)
Guidant Financial Group moved 15 percent of its workforce to home-based offices. As a result, the company will not renew the lease on 3,000 square feet of office space; this development will save the company $48,000 in rent and operational costs next year.
BT, a leading provider of communications solutions, hired its first home worker in 1986; today more than 70% of BT’s employees benefit from flexible working. The company estimates that it has saved at least $500 million, and has improved its productivity by between 15% and 31%. (American Electronics Association)
Nearly 60% of 821 workers polled save at least $25 per month on fuel costs by working at home. (U.S Unified Communications Survey, 2008)
AT&T saves $18 million a year in recruiting and worker retention costs and $25 million in real estate costs because of its formal Telework program. (AT&T, 2000)
Dow Chemical: Administrative costs have dropped 50% annually (15% of which was attributed to commercial real estate costs.) Productivity increased by 32.5% (10% through decreased absenteeism, 16% by working at home and 6.5% by avoiding the commute.)
According to NORTEL , the cost to relocate an employee to another city can run as high as $100,000,and it can cost $2,500 just to move an employee from one cube to another.
NORTEL also , the entire cost to outfit and equip an employee to Telework is made up in the first year if only 3.5 days away from work can be saved, (i.e. time lost due to a doctor’s appointment, ill child, employee illness, other personal situation that requires time away from an office.) That number drops to 1.5 days in subsequent years.
Sun Microsystems saved $67.8 million in real estate costs in fiscal 2006 from 18,000 telecommluters.
Office space for the average worker costs $10,000 per year.
Telework can cut corporate real estate costs from 25% to 90%. (PC World)
IBM reduced real estate costs in the US by from 40% – 60%. (Telecommuting Review)
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