Webtorials Time / Cost Savings Calculator


One of the most difficult parts of evaluating the economic impact of implementing technological changes, such as Unified Communications, SIP-based protocols, and mobility, is to quantify the actual monetary savings realized when time is saved.

To that end, we developed a technology-independent spreadsheet that can be applied to translate time savings into actual dollars. 

So, using a recent report on Mobile Unified Communications as an example, the process for applying this calculator to your own situation is as follows:

1. Determine the amount of time spent (wasted) per day on a specific list of tasks.

2. Determine the amount of that time which could be recovered by utilizing / changing / improving / altering technologies.  Chart below assumes the ability to save 30% of the time. 

Task (for illustration only)

Time Wasted per day

Potential Time Recovered

Unable to utilize one-number "follow me" phone numbers

5

1

Unable to receive streamed content

12

4

Unable to use your custom applications

13

4

Unable to retrieve presence information (contacts' dynamic availability and location information)

14

4

Unable to conduct real-time collaboration

14

4

Unable to provide access to customer information

15

4

Unable to access the company directory/calendaring

16

5

Unable to provide customer service and support

17

5

Minutes  / Day

105

31

Hours / Day

1.7

0.5


3. Determine the number / percentage of employees to whom 1 and 2 apply. In the examples, these employees are referred to as "knowledge workers."  In this chart, one is able to enter your total workforce and the percentage of that workforce who are knowledge workers.  The "% of KWs in this range" will vary depending on the company makeup.

4. Determine their salary range(s), noting that the total must be 100%.

 

Company Size

    31,671

 

% of workforce who are knowledge workers

54%

 

Salary Range

% of KWs in this range

KW workers

Under $50k

23%

3877

$50k to 90k

37%

6309

$90k to $120k

26%

4397

Over $120k

15%

2551

Total:

 100%

17134

 

5. Determine how many hours they work per week.  In the example below we are using historical data from our research.
 
6. Multiply # of hours worked per week by the number of weeks the employee actually works. (calculated automatically in spreadsheet)
 
7. Determine how many annual Overhead Hours for which they're paid (personal / sick / vacation leave).  In this case, we assumed that 48 weeks per year are worked, with a total loss of four weeks.  Thus, 160 hours are added to the "paid" hours.
 
8. Multiply the salaries by 1.3 to incorporate / allow for the costs associated with the employee that are not paid directly to the employee (FICA matching, insurance benefits, etc.) = Gross Compensation (calculated automatically in spreadsheet)
 
9. Divide Gross Compensation by the sum of Hours Actually Worked and Overhead Hours to arrive at Hourly Rate (calculated automatically in spreadsheet).  The annual savings per employee are calculated by using the time saved per days times days/weeks actually worked.  (There are no savings on "overhead hours.")

 

Time saved / day (in hours):

0.5

Weeks worked / year

48

Historical data

Overhead Hours:

160

Annual Hours Saved:

120

 

Salary Distribution

Base Salary

Gross Compensation

Hours worked per week

Hours worked per year

Total Hours Paid

Hourly Rate

Annual Savings per employee

Under $50k

23%

   35,000

             45,500

42

2019

2179

   20.88

 $    2,506

$50k to 90k

37%

   70,000

             91,000

47

2257

2417

   37.65

 $    4,519

$90k to $120k

26%

 105,000

           136,500

51

2458

2618

   52.14

 $    6,256

Over $120k

15%

 150,000

           195,000

54

2588

2748

   70.95

 $    8,514

 

10. These annual savings "per employee" figures can then be plugged back into the spreadsheet in Step 4 to arrive at the potential company-wide savings, again noting that the percentage of knowledge workers must be 100%.

 

Company Size

    31,671

 

 

 

% of workforce who are knowledge workers

54%

 

 

 

Salary Range

% of KWs in this range

KW workers

Annual Savings per employee

Annual Savings

Under $50k

23%

3877

 $   2,506

   9,715,525

$50k to 90k

37%

6309

 $   4,519

 28,506,318

$90k to $120k

26%

4397

 $   6,256

 27,506,658

Over $120k

15%

2551

 $   8,514

 21,721,446

Total:

100%

17134

 

 87,449,948

 

You may download a copy of the calculator and massage the data with your own assumptions.

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