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What is the literal value of an office? [closed]
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Say you have multiple offices, all over the country. Each office has an operational cost (rent, internet bill, etc.), and a certain number of employees. You also have employees who telecommute. How do you determine whether to rent an office for a group of employees in the same area? Conversely, when should you close an office?
It seems to me that you should open a new office if the telecommuting expenses for that area's employees exceed the office expenses, and vice versa, but are there some tangible values I'm missing? I'm only interested in things that I can provide solid evidence for.
offices telecommute
asked Nov 11 '13 at 15:58
jzx
1154
closed as off-topic by Kris, Jim G., CincinnatiProgrammer, Adam V, DJClayworth Nov 11 '13 at 20:35
- This question does not appear to be about the workplace within the scope defined in the help center.
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up vote
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Say you have multiple offices, all over the country. Each office has an operational cost (rent, internet bill, etc.), and a certain number of employees. You also have employees who telecommute. How do you determine whether to rent an office for a group of employees in the same area? Conversely, when should you close an office?
It seems to me that you should open a new office if the telecommuting expenses for that area's employees exceed the office expenses, and vice versa, but are there some tangible values I'm missing? I'm only interested in things that I can provide solid evidence for.
offices telecommute
asked Nov 11 '13 at 15:58
jzx
1154
closed as off-topic by Kris, Jim G., CincinnatiProgrammer, Adam V, DJClayworth Nov 11 '13 at 20:35
- This question does not appear to be about the workplace within the scope defined in the help center.
2
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
1
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35
add a comment |Â
up vote
1
down vote
favorite
up vote
1
down vote
favorite
Say you have multiple offices, all over the country. Each office has an operational cost (rent, internet bill, etc.), and a certain number of employees. You also have employees who telecommute. How do you determine whether to rent an office for a group of employees in the same area? Conversely, when should you close an office?
It seems to me that you should open a new office if the telecommuting expenses for that area's employees exceed the office expenses, and vice versa, but are there some tangible values I'm missing? I'm only interested in things that I can provide solid evidence for.
offices telecommute
asked Nov 11 '13 at 15:58
jzx
1154
Say you have multiple offices, all over the country. Each office has an operational cost (rent, internet bill, etc.), and a certain number of employees. You also have employees who telecommute. How do you determine whether to rent an office for a group of employees in the same area? Conversely, when should you close an office?
It seems to me that you should open a new office if the telecommuting expenses for that area's employees exceed the office expenses, and vice versa, but are there some tangible values I'm missing? I'm only interested in things that I can provide solid evidence for.
offices telecommute
asked Nov 11 '13 at 15:58
jzx
1154
asked Nov 11 '13 at 15:58
jzx
1154
asked Nov 11 '13 at 15:58
jzx
1154
asked Nov 11 '13 at 15:58
jzx
1154
1154
closed as off-topic by Kris, Jim G., CincinnatiProgrammer, Adam V, DJClayworth Nov 11 '13 at 20:35
- This question does not appear to be about the workplace within the scope defined in the help center.
closed as off-topic by Kris, Jim G., CincinnatiProgrammer, Adam V, DJClayworth Nov 11 '13 at 20:35
- This question does not appear to be about the workplace within the scope defined in the help center.
2
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
1
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35
add a comment |Â
2
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
1
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35
2
2
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
1
1
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35
add a comment |Â
1 Answer
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Well, I don't think this is a Workplace question, but it is a good question.
In my opinion:
There is real value in people sitting together. Telecommuting is great, but there is nothing that will replace the context you get in sitting in the same building with your team. People are social creatures, even IT folks (although we have our own social norms different from "The normies."). The right balance of in-office and telecommuting flexibility is a constantly moving target, but we all agree that office-only doesn't do well for devs, and I don't think that remote-only is that great, either (although that's pretty much what I am, now).
Do you need a customer-facing presence in that market? Even a small office is a great sales tool.
What telecommuting expenses? If you environments are set up properly, they should approach nill. Do you offer allowances for Internet expenses? Do you have desktop virtualization that is per-user? I'd be surprised if your telecommuting costs increased at all with an office shutdown or decreased with an office opening. If they do, then I strongly suggest you review your disaster recovery plans.
In summary, I don't think you can weigh office expense against telecommuting expense. I think you need to put a monetary value on the office based on productivity increases due to collaboration and "support centers." Then add in any sales and opportunity gains you have by having an office in that market, and weigh it against the hard costs and administrative overhead of maintaining the office.
From a purely business perspective - opening an office does give you an irrefutable "nexus" for purposes of sales tax collection and reporting, but that's hardly a make-or-break for having an office.
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
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1 Answer
1
active
oldest
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1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
0
down vote
Well, I don't think this is a Workplace question, but it is a good question.
In my opinion:
There is real value in people sitting together. Telecommuting is great, but there is nothing that will replace the context you get in sitting in the same building with your team. People are social creatures, even IT folks (although we have our own social norms different from "The normies."). The right balance of in-office and telecommuting flexibility is a constantly moving target, but we all agree that office-only doesn't do well for devs, and I don't think that remote-only is that great, either (although that's pretty much what I am, now).
Do you need a customer-facing presence in that market? Even a small office is a great sales tool.
What telecommuting expenses? If you environments are set up properly, they should approach nill. Do you offer allowances for Internet expenses? Do you have desktop virtualization that is per-user? I'd be surprised if your telecommuting costs increased at all with an office shutdown or decreased with an office opening. If they do, then I strongly suggest you review your disaster recovery plans.
In summary, I don't think you can weigh office expense against telecommuting expense. I think you need to put a monetary value on the office based on productivity increases due to collaboration and "support centers." Then add in any sales and opportunity gains you have by having an office in that market, and weigh it against the hard costs and administrative overhead of maintaining the office.
From a purely business perspective - opening an office does give you an irrefutable "nexus" for purposes of sales tax collection and reporting, but that's hardly a make-or-break for having an office.
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
add a comment |Â
up vote
0
down vote
Well, I don't think this is a Workplace question, but it is a good question.
In my opinion:
There is real value in people sitting together. Telecommuting is great, but there is nothing that will replace the context you get in sitting in the same building with your team. People are social creatures, even IT folks (although we have our own social norms different from "The normies."). The right balance of in-office and telecommuting flexibility is a constantly moving target, but we all agree that office-only doesn't do well for devs, and I don't think that remote-only is that great, either (although that's pretty much what I am, now).
Do you need a customer-facing presence in that market? Even a small office is a great sales tool.
What telecommuting expenses? If you environments are set up properly, they should approach nill. Do you offer allowances for Internet expenses? Do you have desktop virtualization that is per-user? I'd be surprised if your telecommuting costs increased at all with an office shutdown or decreased with an office opening. If they do, then I strongly suggest you review your disaster recovery plans.
In summary, I don't think you can weigh office expense against telecommuting expense. I think you need to put a monetary value on the office based on productivity increases due to collaboration and "support centers." Then add in any sales and opportunity gains you have by having an office in that market, and weigh it against the hard costs and administrative overhead of maintaining the office.
From a purely business perspective - opening an office does give you an irrefutable "nexus" for purposes of sales tax collection and reporting, but that's hardly a make-or-break for having an office.
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
add a comment |Â
up vote
0
down vote
up vote
0
down vote
Well, I don't think this is a Workplace question, but it is a good question.
In my opinion:
There is real value in people sitting together. Telecommuting is great, but there is nothing that will replace the context you get in sitting in the same building with your team. People are social creatures, even IT folks (although we have our own social norms different from "The normies."). The right balance of in-office and telecommuting flexibility is a constantly moving target, but we all agree that office-only doesn't do well for devs, and I don't think that remote-only is that great, either (although that's pretty much what I am, now).
Do you need a customer-facing presence in that market? Even a small office is a great sales tool.
What telecommuting expenses? If you environments are set up properly, they should approach nill. Do you offer allowances for Internet expenses? Do you have desktop virtualization that is per-user? I'd be surprised if your telecommuting costs increased at all with an office shutdown or decreased with an office opening. If they do, then I strongly suggest you review your disaster recovery plans.
In summary, I don't think you can weigh office expense against telecommuting expense. I think you need to put a monetary value on the office based on productivity increases due to collaboration and "support centers." Then add in any sales and opportunity gains you have by having an office in that market, and weigh it against the hard costs and administrative overhead of maintaining the office.
From a purely business perspective - opening an office does give you an irrefutable "nexus" for purposes of sales tax collection and reporting, but that's hardly a make-or-break for having an office.
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
Well, I don't think this is a Workplace question, but it is a good question.
In my opinion:
There is real value in people sitting together. Telecommuting is great, but there is nothing that will replace the context you get in sitting in the same building with your team. People are social creatures, even IT folks (although we have our own social norms different from "The normies."). The right balance of in-office and telecommuting flexibility is a constantly moving target, but we all agree that office-only doesn't do well for devs, and I don't think that remote-only is that great, either (although that's pretty much what I am, now).
Do you need a customer-facing presence in that market? Even a small office is a great sales tool.
What telecommuting expenses? If you environments are set up properly, they should approach nill. Do you offer allowances for Internet expenses? Do you have desktop virtualization that is per-user? I'd be surprised if your telecommuting costs increased at all with an office shutdown or decreased with an office opening. If they do, then I strongly suggest you review your disaster recovery plans.
In summary, I don't think you can weigh office expense against telecommuting expense. I think you need to put a monetary value on the office based on productivity increases due to collaboration and "support centers." Then add in any sales and opportunity gains you have by having an office in that market, and weigh it against the hard costs and administrative overhead of maintaining the office.
From a purely business perspective - opening an office does give you an irrefutable "nexus" for purposes of sales tax collection and reporting, but that's hardly a make-or-break for having an office.
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
edited Nov 13 '13 at 16:08
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
answered Nov 11 '13 at 16:55
Wesley Long
45k15100161
45k15100161
add a comment |Â
add a comment |Â
2
Company financial advice is off topic for The Workplace.
– CincinnatiProgrammer
Nov 11 '13 at 17:17
1
maybe try On Startups
– DJClayworth
Nov 11 '13 at 20:35