Stay-at-home mandates have exposed the costs of maintaining fixed assets while they sit idle.
Converting a portion of fixed costs to scalable expenses can improve cash flow as you start bringing employees back to the office, according to an analysis by remote-work company, Motus.
Stay-at-home mandates have left 11 billion square feet of office space idle, costing organizations $54 billion, the company estimates.
It costs organizations $4,977 a year for each employee working in an office, the company estimates. Since that’s treated as a fixed cost, any time space sits idle — even for routine job changes — you’re paying for an asset that’s providing no value in return.
That works out to an average $54,000 a year for every 100 employees, the company calculates.
Source: CFO DIVE (2020)