Converting fixed costs to scalable expenses

By: Robert Freedman.

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)

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