IT Werks Technologies Inc.

 
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Productivity of your Employees

Most businesses are losing 20% to 30% of productivity each day.

Click here to learn what causes this, and what you can do about it!

 

Availability of your Network

What does it take for a small to mid sized business to run an efficient network?

Find out here!

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Staff Productivity Loss Calculator

What is this Calculator about?
Businesses lose 1 hour and 15 minutes of productivity (per employee, per day) because of:
  • Technical Problems
  • Staff Personal Time on the Internet
The Calculator is designed to give you an idea of how big the problem is in your company.

The Calculator uses an algorithm that is based on company specifics you provide - such as:

To understand any of the controls, please read below the Calculator.



Description of Controls used on the Staff Productivity Loss Calculator

Number of Employees

This one is straight forward. It's a good idea to use the number of 'Knowledge Workers' in your company. We are of course interested in the users who use computers.

Average Wage per Employee

To help you get an accurate calculation use the appropriate figure here.

Online Time Waste (Productivity Issue)

Each staff member spends 45 minutes each day, on average, surfing the web and doing other personal stuff. It may not seem that way but the act of replying a single personal email costs about 3.5 minutes of distraction. We have broken this down in our article 'Email is not really free'. While there are employees that spend hours each day surfing and doing personal stuff on the net, the best employees have an online personal usage of 15-20 minutes. On average however, employees spend about 45 minutes each day on personal surfing. This is a huge factor in measuring staff productivity.

Tech Problems (Productivity issue)

Each staff member spends about 8-12 hours each month working out technical problems (works out to about 24-36 minutes each day). This is another major factor to staff productivity. It could be as simple as troubleshooting a printer, or as big as waiting for the Server to come back online. Again, most companies don't realize how much time is actually spent which is why we have created a Free Network Evaluation. Call us if you want to take advantage of learning exactly how much time is being wasted on your company networks. It's a no charge evaluation!

Business Expense Multiplier (True Employee Cost)

If you pay an employee $35,000 each year and you ask the employee what the cost of his/her services is to the company, the employee will say $35,000. However, an accountant will tell you something quite different...

Your accountant will confirm that the most expensive cost to a company is its Human Resources -- the Staff. This is because almost every cost in your company will be based on how many employees you have. For example, you will be paying much more in Heating and Cooling if you have many employees because you have a bigger space to Heat and Cool. If you have many employees, you will also be paying much more in Lease/Mortgage, Electrical, Water, Insurance, etc. Productivity calculations have to take these factors into account to get the actual cost of an employee.

The amount of your cost will vary based on the number of employees you have in your company. And, each of these costs have to be pro-rated to find the true cost an employee is to the company. Just using the wages will give you an incorrect value.

Your accountant will tell you that the cost of the employee is a multiple of what you pay them. It is one of those magic numbers in accounting and it's typically between 1.5 and 2.5 times the average employee wages. In most cases it's 1.85 times the employees wages. So, if you pay an employee $35,000 and your accountant tells you that it is a 2.0 multiple, then the employee actually costs you $70,000 (including the Space Used, Heating and Cooling, Electrical, Insurance, and other costs).

Using this approach, you can successfully understand what it is costing your company when the employee is off sick or is not performing at peak.

The best way to choose the right number for yourself is to try and understand how tight a ship you are running. Do you have your finances completely in order? Do you know exactly what you are paying each month and are you managing your expenses well? If so, you might have a small multiplier, of say around 1.5. If however you are taking from Peter and giving to Paul (so to speak), and find yourself in a constant struggle with 'managing' your finances then you might be closer to 2.2.

Of course your accountant can give you the best number to use here, however, for the purposes of this calculation, it's best to use an average of 1.85 and then modify this figure to reflect what you feel is right for your situation.


We hope that you have found this calculator handy. Though it is impossible to be completely accurate, the results should give you a very good concept of how much Technical Problems and Internet-related time wastage costs a company, and how much of a revenue increase it means for your specific situation.

To learn more, you may want to take advantage of an educational orientation that we offer. It outlines the challenges of, and solutions to, productivity losses due to technology misuse. This information is available at no-cost to qualified businesses in the Greater Toronto Area as a marketing test. Please contact IT Werks to book the orientation.



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IT Werks Technologies Inc.