Calculate Your Cost Savings
Welcome to the cost savings calculator!
This tool is designed to help you estimate the cost savings your organization can achieve using a desk booking tool for space optimization. With the rise of remote work and flexible work arrangements, many companies are looking for ways to optimize their office space and reduce costs. By using a desk booking tool, organizations can use their existing space better and reduce the need for costly real estate leases.
To use this calculator, enter the total area of your office space, the cost per sqft of your real estate lease, the space savings percentage that you expect to achieve with a desk booking tool, the increased space utilization percentage that you wish to achieve, and the increased productivity percentage that you expect to achieve. The calculator will then estimate your total cost savings based on these inputs.
Please note that this calculator provides estimates only and should not be considered a substitute for professional advice. We recommend that you consult with a real estate professional or financial advisor for a more accurate assessment of the cost savings you can achieve with a desk booking tool.
Thank you for using the cost savings calculator! We hope that this tool is helpful in your efforts to optimize your office space and reduce costs.
Expected Cost Savings (per year):
Formula Explained for Calculation
Reduced area = Total area * (100 – Space savings) * (100 + Increased space utilization) / 10000. This formula calculates the reduced area based on the total area, space savings, and increased space utilization. It first calculates the percentage of the area saved by subtracting the space savings percentage from 100, then adds the increased space utilization percentage to 100 to get the final percentage. It then multiplies this percentage by the total area and divides by 10,000 to convert from sqft to square meters.
Reduced cost = Total cost per sqft * Reduced area This formula calculates the reduced cost based on the total cost per sqft and the reduced area calculated in the previous step.
Productivity savings = Average salary of employees * (Increased productivity percentage / 100) This formula calculates the productivity savings based on the average salary of employees and the increased productivity percentage.
Total savings = Total cost – Reduced cost + Productivity savings. This formula calculates the total savings by subtracting the reduced cost from the total cost and adding the productivity savings.
These formulas consider the variables the user provides through the input fields and calculate the cost savings that can be achieved by using a desk booking tool for space optimization.
Increased Productivity: By enabling more flexible work arrangements, the organization may increase employee productivity and reduce the time employees commute or work in distracting environments. For example, if the organization can increase productivity by 5% and the average salary of employees is $50,000 per year, it could save $25,000 per year in increased productivity.
How do we calculate the true cost of hybrid work?
Have you noticed the shift in our work culture or the emergence of the new normal? Opinions about remote work vary widely, with some leaders like Netflix CEO Reed Hastings seeing no positives, while others like Walmart CTO Suresh Kumar find it advantageous. To understand if hybrid work is truly beneficial, we must address several questions about the balance between remote and office work, employee productivity, and decision-making processes.
The challenge of addressing hybrid work recognizes it as three separate yet interconnected problems: effectiveness, staffing, and social fabric.
Effectiveness: The capacity to fulfill stakeholder expectations. Many organizations were productive during COVID-19 due to their focus on short-term efficiency. However, we must question whether this approach is sustainable in the long term, considering the impact on work-life boundaries, increased stress, and collaboration.
Staffing: Attracting and retaining talent based on hybrid work policies. Prospective employees now consider an organization’s flexible work policy a crucial decision factor. The real comparison should be between the perceived benefits of remote and office work, and organizations must reclaim this narrative.
Social Fabric: Preserving and nurturing organizational culture. Remote work impacts psychological safety, trust, power dynamics, and feelings of isolation. Organizations must consider the long-term effects of their current practices on their culture.
The first step to address these aspects is to encourage open discussions and recognize that disagreements may stem from differing priorities rather than fundamentally opposing views on effectiveness, staffing, or culture. By understanding and addressing these three aspects, organizations can better navigate the complexities of hybrid work.
Room Manager Explained in 5 Minutes Video
If you want to get a quick overview of the main features of Room Manager, check out our “Room Manager Explained in 5 Minutes” video.
This video reviews the system’s key features, including desk and room booking, visual floorplan booking, and efficient workspace management.
Watch the Room Manager Explained in 5 Minutes video YouTube Video.
