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The Dollars and Sense of Investing in IT

By:Christine Fettinger

Not investing in IT can be an easy decision sometimes. So what if your lowest paid worker has a computer older than your 3rd grader? The extra year you can avoid buying a new computer is an extra year of money saved, going straight to your bottom line.

Right?

Unfortunately for the thrifty office manager, that logic fails when you consider the demands of the modern workforce. More and more, Information Technology is driving all our lives and becoming the backbone of a modern workforce. Instead of a sharpened pickaxe, you’re sending your workers into the mine with a technology soup spoon – terribly ill equipped for their workday.

Modern employees spend most of their working time on their computers, and require technology to be productive. Each minute that your employees are ready to work, but are instead staring at their non-responsive computers, costs the employee time and the company money.

Mismanaged technology does more than waste employee time. Slow, mismanaged computers are frustrating. Eventually, these minor working impediments harm the emotional environment of your office, further reducing productivity.

These costs can add up quickly, even if you ignore the softer costs of a more stressful working environment. For just one employee, 10 minutes of wasted time a day adds up to 50 minutes per work week, and up to 30 hours of wasted time per year. While the cost of an IT investment is easily visible on your monthly expenses, the cost of poor IT systems is silent and creeping – sapping your profitability without the courtesy of an invoice.

Hidden costs can be hard to fully grasp. To combat this, we’ve created a tool to help visualize the costs that your company might be facing.

The table below expresses the cost of wasted time to your company. In order for it to be relevant to a wide audience, we made some generalizations about working hours and employee productivity. Hopefully, this tool gives you a chance to understand how much your IT choices have been costing your business.

Salary

Hourly Cost*

Cost of 5 min/day

Cost of 10 min/day

Cost of 15 min/day

$25,000.00

$12.02

$260.42

$520.83

$781.25

$30,000.00

$14.42

$312.50

$625.00

$937.50

$35,000.00

$16.83

$364.58

$729.17

$1,093.75

$40,000.00

$19.23

$416.67

$833.33

$1,250.00

$45,000.00

$21.63

$468.75

$937.50

$1,406.25

$50,000.00

$24.04

$520.83

$1,041.67

$1,562.50

$55,000.00

$26.44

$572.92

$1,145.83

$1,718.75

$60,000.00

$28.85

$625.00

$1,250.00

$1,875.00

$65,000.00

$31.25

$677.08

$1,354.17

$2,031.25

$70,000.00

$33.65

$729.17

$1,458.33

$2,187.50

$75,000.00

$36.06

$781.25

$1,562.50

$2,343.75

$80,000.00

$38.46

$833.33

$1,666.67

$2,500.00

$85,000.00

$40.87

$885.42

$1,770.83

$2,656.25

$90,000.00

$43.27

$937.50

$1,875.00

$2,812.50

$95,000.00

$45.67

$989.58

$1,979.17

$2,968.75

$100,000.00

$48.08

$1,041.67

$2,083.33

$3,125.00

* not adjusted for Benefits, vacation, etc.