| ServiceXen | | | | | | | | | | | | |
| New Employee Cost Calculator | | | | | | | | | | | | |
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| This tool is designed to help IT decision makers determine the immediate and ongoing costs of adding new users. Complete the worksheet by filling in the cost column and adding/removing cost items as necessary. Cost items are designated as either "current" one-time costs, or "ongoing" recurring costs - adjust these designations as appropriate. For an example of how to complete the sheet, see the Example Worksheet included with this file. For a list of activities that IT must complete, see the New Employee Checklist.
Cost items are separated into IT costs and non-IT costs. IT costs are those that can be levied against business units if the enterprise is operating an IT chargeback model. These costs are also valuable for IT accounting and control. The non-IT component is not required for chargebacks and will likely not be completed by the IT department. This second section is included to help enterprises that wish to manage the overall process of adding employees and should be completed in conjunction with HR and other business units. | | | | | | | | | | | | |
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| IT-Related Costs of New Employee | Cost | | Current/ Ongoing | Description | | | | | | | | | | | | |
| New user PC/laptop | | $0 | Current | Includes the cost of PCs, laptops, and peripheral devices, as well as the cost of imaging the PC to meet user requirements. | | | | | | | | | | | | |
| Per-client/user software licenses | | $0 | Current | The average cost for a basic Microsoft setup is approximately $1,200 per user. Add to this the cost of business-specific applications and server client access licenses (CALs). | | | | | | | | | | | | |
| Annual desktop maintenance and upgrades | | $0 | Ongoing | Includes all software license upgrades, hardware upgrades, and maintenance. | | | | | | | | | | | | |
| Telephony hardware and setup | | $0 | Current | Includes the cost of a hard/soft phone, adding an additional phone line, applicable software, and configuration. | | | | | | | | | | | | |
| Telephony service | | | Ongoing | Determine the average per-user cost of phone service including voice mail, conferencing services, fax lines, and services to cell/smart phones. Note, different types of users will have different costs (e.g. consider a call center employee versus a researcher). | | | | | | | | | | | | |
| Leasing other equipment (e.g. cell phones, PDAs, pagers) | | $0 | Ongoing | If paid for by the enterprise. | | | | | | | | | | | | |
| Establish login and ID cards | | $0 | Current | Includes the time spent by an IT employee for initial setup activities, the cost of security cards and transponders, and the administrative time spent acquiring permissions and sign-off. | | | | | | | | | | | | |
| Initial troubleshooting | | $0 | Current | Consider the amount of time initially troubleshooting for a new user and multiply this by the average hourly wage of an IT support person. Initial troubleshooting might include a quick check-in with the new user at Day 1, Day 2, and at the end of Week 1 to ensure that the new installation is problem-free. | | | | | | | | | | | | |
| Ongoing help desk costs | | $0 | Ongoing | Determine the average number of incidents per employee in the department and multiply this by the average time-per-incident (in hours) and the average hourly wage of a help desk employee. | | | | | | | | | | | | |
| Infrastructure overhead - servers | | $0 | Ongoing | Includes costs such as server licensing, maintenance, and upgrades. Use the total costs for the business unit and divide by the number of users that currently access these resources to get a per-user figure. | | | | | | | | | | | | |
| Infrastructure overhead - storage | | $0 | Ongoing | Look at the cost of SAN an NAS devices. Use the total costs for the business unit and divide by the number of users that currently access these resources to get a per-user figure. | | | | | | | | | | | | |
| Infrastructure overhead - processing power | | $0 | Ongoing | If managed separately and metered, look at the processing power used by the business unit and the cost of providing this. Divide by the number of users that currently access these resources to get a per-user figure. | | | | | | | | | | | | |
| Infrastructure overhead - network usage | | $0 | Ongoing | Look at LAN, WAN, and wireless costs. If usage is metered, use the total costs for the business unit and divide by the number of users that currently access these resources to get a per-user figure. | | | | | | | | | | | | |
| Printing and copying | | $0 | Ongoing | Includes items such as paper, toner, ink, and printer maintenance. Most multifunctional devices will offer metrics such as cost-per-print and monthly printing volumes - use these to estimate the average per-user cost. | | | | | | | | | | | | |
| Training | | $0 | Current | Includes IT-facilitated training only. Multiply the number of hours of training required by the average hourly wage of the IT employee conducting the training. | | | | | | | | | | | | |
| System/network administration | | $0 | Ongoing | Divide the annual salary of the system/network administrator by the total number of users currently supported. | | | | | | | | | | | | |
| | | $0 | | | | | | | | | | | | | | |
| | | $0 | | | | | | | | | | | | | | |
| | | $0 | | | | | | | | | | | | | | |
| Total IT Cost of a New Employee | $0 | | | | | | | | | | | | | | | |
| Total Current IT Cost | $0 | | | | | | | | | | | | | | | |
| Total Ongoing IT Costs | $0 | | | | | | | | | | | | | | | |
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| Non-IT-Related Costs of a New Employee | Cost | | Current/ Ongoing | Description | | | | | | | | | | | | |
| Recruiting costs | | | Current | Includes the time spent searching for a candidate, interviewing prospective candidates, and other recruiting-related costs such as headhunters, recruiting firms, job postings, recruiting events, travel costs, internal referral incentives, and so on. | | | | | | | | | | | | |
| Base salary | | $0.00 | Ongoing | As stated. | | | | | | | | | | | | |
| Signing bonus | | $0.00 | Current | If applicable. | | | | | | | | | | | | |
| Benefits (e.g. insurance, health, dental, child care, disability) | | $0.00 | Ongoing | As stated. | | | | | | | | | | | | |
| Relocation | | $0.00 | Current | If paid for by the enterprise. | | | | | | | | | | | | |
| Incentives/commission | | $0.00 | Ongoing | Use the average paid to similar employees on an annual basis. | | | | | | | | | | | | |
| Paid time off | | $0.00 | Ongoing | Although this is generally included as a part of salary expenses, it may also be worth considering the opportunity cost of not having a productive employee for x number of days. The opportunity cost to the enterprise will always be slightly more than the salary cost. | | | | | | | | | | | | |
| Office space/furniture | | $0.00 | Current | Consider the cost of new office furniture and/or office refurbishing. | | | | | | | | | | | | |
| HR and administrative overhead | | $0.00 | Ongoing | Divide the annual salary of HR and administrative personnel by the total number of employees currently supported. | | | | | | | | | | | | |
| Finance and payroll overhead | | $0.00 | Ongoing | Divide the annual salary of payroll personnel by the total number of employees currently supported. | | | | | | | | | | | | |
| Parking tolls and transportation | | $0.00 | Ongoing | If paid for by the enterprise. If hiring a branch office employee, consider the annual cost of travel to the head office. | | | | | | | | | | | | |
| Office supplies | | $0.00 | Ongoing | Includes standard office supplies - pens, paper, stapler, clips, tissue paper, tacks, highlighters, scissors, file folders, desk organizers, and so on. | | | | | | | | | | | | |
| Ergonomic considerations | | $0.00 | Current | New employees are occasionally afforded certain ergonomic considerations upon request. This will certainly be true for employees with physical disabilities or other accessibility requirements. Consider the cost of ergonomic keyboards and other input devices, keyboard trays, specialized desk chairs, larger/raised monitors, anti-glare devices, and desk lamps. | | | | | | | | | | | | |
| Training | | $0.00 | Current | Includes non-IT training costs such as on-site training programs, mentorships, seminars, and eLearning activities. | | | | | | | | | | | | |
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| | | $0.00 | | | | | | | | | | | | | | |
| Total Non-IT Costs of a New Employee | $0 | | | | | | | | | | | | | | | |
| Total Current Non-IT Cost | $0 | | | | | | | | | | | | | | | |
| Total Ongoing Non-IT Costs | $0 | | | | | | | | | | | | | | | |
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| Total Enterprise Cost of a New Employee | $0 | | | | | | | | | | | | | | | |
| Total Current Enterprise Cost | $0 | | | | | | | | | | | | | | | |
| Total Ongoing Enterprise Costs | $0 | | | | | | | | | | | | | | | |
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| IT Metrics | | | | | | | | | | | | | | | |
| Total IT Cost as a Percent of Total New Employee Cost | 0.00% | | | | | | | | | | | | | | | |
| Ongoing IT Costs as a Percent of Total Ongoing Employee Costs | 0.00% | | | | | | | | | | | | | | | |
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