Measuring Telework RoI

Measuring
Telework and
Mobility Return
on Investment:
A Snapshot of Agency Best Practices

www.mobileworkexchange.com 2
Commuting costs
Transit subsidies
Environmental impact
Continuity of operations (COOP)
Productivity
Recruitment/retention
Real estate
Utilities
Telework and mobility have many benefits for Federal agencies, including greater
flexibility, productivity, continuity of operations, and real estate and utilities savings
– not to mention improved work/life balance and employee satisfaction. Recognizing
the potential benefits of flexible work arrangements, Congress passed the Telework
Enhancement Act (the Act) in December 2010, establishing a Federal framework
for implementing agency telework programs. Additionally, the administration has
communicated a number of goals for increased mobility, including the recent Digital
Government Strategy, which highlights how mobility can help form the foundation for a
21st century government to better serve the American people.
Determining telework return on investment (RoI) is important for gaining management
buy-in for telework and mobility programs, and for determining whether initial technology
and facility investments are cost effective and justified. Although agencies are in many
different stages of telework implementation, each should evaluate the success and
benefits of their telework programs to demonstrate how the program is helping the
agency meet its core missions at a reduced cost. In response to a universal need to
better understand how to measure telework RoI, Mobile Work Exchange and the U.S.
Office of Personnel Management (OPM) researched best practices and interviewed
various agency Telework Managing Officers (TMOs) to develop this whitepaper providing
guidance on how to measure agency RoI.
We examined the following categories:
Introduction

To ensure the most accurate RoI measurements,
agencies need to clearly define telework roles
and frequency and outline clear goals for the
telework program. The following definitions,
based on OPM’s Guide to Telework in
the Federal Government, available at
www.telework.gov/guidance_and_legislation/
telework_guide/telework_guide.pdf, provide
examples for defining telework roles, frequency,
and goals.
Defining Roles
Because “telework” is a broad term, agencies
need to establish a working definition to
calculate RoI. The Act defines telework
as “a work flexibility arrangement under
which an employee performs the duties and
responsibilities of such employee’s position, and
other authorized activities, from an approved
worksite other than the location from which
the employee would otherwise work.” Telework
frequency helps to define roles, as demonstrated
by the following example definitions:
Teleworker: An employee who performs the
duties and responsibilities of his or her
position from an approved worksite other
than the location from which the employee
would otherwise work
Remote Worker: An employee who resides
and works at a location beyond the
local commuting area of the employing
organization’s worksite
Mobile Worker: An employee who performs
duties that require routine and regular travel
to customer or other worksites as opposed
to a single authorized alternative worksite
Defining Frequency
The frequency an employee teleworks from
an alternative worksite can influence RoI
calculations, so understanding the different
frequency types is necessary. In regards to
terminology, there are several types of telework
frequencies an agency should address:
full-time, routine, situational/ad-hoc, and
emergency/COOP:
Full-time: Occurs when an employee
regularly works from an alternative worksite
on a daily basis
Routine: Occurs when an employee works at
an alternative worksite on a regular, ongoing
schedule less than full-time
Situational/ad-hoc: Occurs when an employee
works from an alternative worksite on a case-
by-case basis
Emergency/COOP: Occurs when an employee
works from an alternative worksite other than
his/her normal duty location when a natural
disaster, emergency, or other event causes
his/her normal duty location to become
unavailable
Defining and Setting Goals
When assessing RoI, agencies should take
into account and establish telework program
goals, both at the individual and organizational
levels. Goal setting is an important precursor to
measuring telework RoI because it defines the
agency’s strategic direction and, ultimately, how
the telework program should be developed and
implemented. Further, it defines what needs
to be accomplished in a telework program
to ensure the agency successfully meets its
mission. Defining specific goals and tracking
results will help agencies to determine a
measurable RoI.
Goal setting can be telework-specific or
agency-wide:
Telework specific: Focus on setting
participation goals and building a business
case for telework
Agency-wide: Focus on making telework
an agency priority and incorporating it into
strategic objectives
Setting the Stage for Measuring RoI

It is generally understood that telework
and mobility have myriad benefits – but to
calculate RoI and present a strong business
case, agencies need to identify specific,
measurable value and cost factors to
demonstrate how telework either reduces
current costs or avoids future costs. Value
factors are the potential benefits that result
from telework – such as reduced real estate
costs as a result of flexible work spaces.
Cost factors, including telework training or
information technology and equipment, may
involve an up-front cost; however, this effort
will calculate how the long-term benefits may
outweigh the initial investment.
What to Measure
To develop a comprehensive framework for
assessing telework RoI, agencies should
consider the value factors that have the
potential to benefit the agency and the
cost factors associated with implementing
the telework program. The most commonly
identified telework value factors include
commuting costs, transit subsidies,
environmental impact, COOP, productivity,
recruitment/retention, real estate, and utilities.
Agencies should also consider which costs are
taken on by the agency or by the employee.
For example, some agencies require part-time
teleworkers to provide their own laptops or
mobile phones, and others pay a stipend to
teleworkers to cover some of the costs. RoI is
then determined by comparing the difference
between the total value and the total cost.
How to Measure
Once an agency has identified which value
factors it will measure, it must determine
specific calculation methods. It is important to
note that some value factors are more complex
than others to quantify, and some agencies
might have more resources than others to
collect data for calculating RoI. No two Federal
telework programs are exactly alike.
Most agencies can refer to OPM’s annual
report to Congress1
as a resource for such
telework data. The report uses data gathered
from OPM’s annual data call to provide
insight into agency efforts and progress in
implementing the Act, report on employees’
roles and frequency of Federal telework, provide
summaries of agency goal setting efforts, and
discuss telework-related outcomes.
Of note, it is important to keep in mind several
considerations when designing and measuring
telework RoI. Because the specific method an
agency uses to measure value factors may
impact its RoI calculations, several “rules of
thumb” can be applied when estimating RoI. For
example, reduction in utilities can be assessed by
determining the average utilities rate per square
foot and calculating how much less will be used
based on the reduction in space. It can also be
estimated by looking at the average utilities rate
per building and estimating the potential savings
from relinquishing office space. Both methods
are sound, but will likely yield different numbers.
Agencies should consider the resources available,
and then use their best judgment in selecting
methods that are most appropriate and feasible
for measuring RoI variables.
It is also important to consider causation.
Telework may not be the sole explanation for a
reduction in expenses or increased productivity;
while increased use of telework within an
agency may be related to these outcomes, the
causal relationship is unknown. For example, an
agency may see an increase in productivity after
implementing a new telework program. While
the increased ability to telework may be a large
contributing factor to the increase in productivity,
other factors may also be at play. If the value
or cost would occur regardless of an agency’s
telework implementation, then the value or cost
should not be considered relevant for calculating
telework RoI. For example, many agencies
standardized laptops as part of their general
IT modernization efforts. Reprioritizing laptops
to teleworkers would not constitute an added
cost unless the agency purchased laptops it
would not have purchased in the absence of the
telework program. Other avoided costs may be a
direct or indirect result of the telework program.
If telework allowed these costs to be avoided,
they should be counted as savings.
RoI: Getting an Accurate Measure
1
http://www.telework.gov/Reports_and_Studies/Annual_Reports/

RoIwww.mobileworkexchange.com 5
Agencies can track data for value factor
inputs using a variety of tools.The
following are a few examples of tools:
General Services Administration
(GSA)’s Carbon Footprint Tool and Green
Procurement Tool is an online tool that
allows agencies to inventory their emissions
and evaluate how mobility can help reduce
the environmental impact. To use the tool,
agencies need data about their energy
consumption, equipment, and employees’
travel and commuting behaviors. The tool
can calculate the existing environmental
impact or be used to model the impact of
future strategies. The tool is available at
www.carbonfootprint.gsa.gov
GSA’s Cost Per Person Model is an Excel-
based tool that allows users to compute
and benchmark the cost per person for
various workspace, information technology
(IT), and telecommunications scenarios.
The Cost Per Person Model also calculates
potential cost savings resulting from the
use of alternative work environments,
such as hoteling2
or desk sharing. This
tool is available at www.gsa.gov/portal/
content/105134
OPM’s fee-for-service group’s Telework
Satisfaction Survey can survey supervisors
and front-line employees separately to
ascertain the distinct differences these
groups may have on four dimensions:
Telework Awareness, Performance
Management in the Telework
Environment, Employee Engagement
in the Telework Environment, and
Satisfaction with Telework Capabilities.
The tool is administered online, and takes
10-15 minutes to complete. Survey items
can be tailored specifically to the needs
of the participating agency, and a report
can be provided detailing the strengths
and weaknesses of a telework program.
The survey is available at http://www.
opm.gov/services-for-agencies/telework-
management/telework-survey/
Mobile Work Exchange’s RoI Calculator
uses agency answers to six key questions
in order to calculate telework RoI for the
following value factors: transit subsidies,
environmental impact, COOP, productivity,
recruitment/retention, and real estate/
utilities. Using the Mobile Work Exchange
RoI calculator generally requires agencies
to make estimates or assumptions
based on available data. The calculator
also relies upon industry standards to
determine calculations. As such, the
calculator may not generate an exact
measure of an agency’s RoI; however,
using the calculator does generate a
reasonable estimate of agency telework
RoI. The calculator is available at
www.mobileworkexchange.com/
measuringRoI
RoI: Getting an Accurate Measure
2
Hotel spaces are unassigned work stations that employees can reserve for temporary use

The following sections detail additional guidance
on possible measurement issues and how
agencies have been measuring various RoI value
factors. Again, depending on the agency and its
resources, certain methods for measuring value
factors may be more appropriate or feasible
than others.
Commuting Costs
Telework has the potential to impact
transportation at both the employee and agency
level. By teleworking one or more days a week,
the employee can benefit by avoiding commuting
miles, which results in money and time saved.
Even though these savings are a primary benefit
to the employee, an agency may still find value
in calculating and reporting the estimates to the
employee, which may enhance the employee’s
attraction and commitment to the organization
(i.e., increased retention).
Most agencies do not have specific
information about employees’ length of
commute and type of car; however, an
estimate can provide an approximate
baseline. Mobile Work Exchange’s “Bank on
Telework: The Telework Week 2012 Impact
and Year-over-Year Benchmark” report found
that the average participant commutes 48
miles round trip per day. Thus, an agency
can multiply that estimate by the total
number of teleworkers and by the average
frequency (days/week). The report also found
that the average Federal participant gained
back 3.5 hours per week in commuting
time. The “Telework Week 2012 Impact
and Year-over-Year Benchmark” report is
available at www.mobileworkexchange.com/
teleworkweek2012
To obtain a more precise assessment of
commute miles avoided, an agency can
ask its teleworkers to report the round-trip
distances of their commutes. Then, the
agency can multiply commuting distances
by the employee’s telework frequency and
total all of the miles for each teleworker.
Additionally, government organizations and
employees can utilize the Mobile Work
Exchange commuting cost calculator.
The calculator automatically computes
the potential cost savings, environmental
benefit, and telework dividend of Federal
telework. The calculator is available at
www.mobileworkexchange.com/calculator
Transit Subsidies
Transit subsidy reductions deliver the highest
commuter savings to the agency. Full-time
teleworkers or remote workers who can shorten
their commuting miles by hoteling or not
coming into the office every day can save the
agency money by not using or reducing transit
subsidies.
According to the Department of Defense3
,
agencies can calculate the transit
subsidy savings using three key pieces of
information: the number of teleworkers who
surrender their transit subsidy, the total
amount of the subsidies surrendered, and
the number of telework days performed by
the teleworkers annually. The Headquarters
Air Force (HAF) Telework Program chartered
an Excellence in Government Working Group
to develop a formula that measures transit
subsidy reductions:
Average number of telework days per
teleworker = Total number of teleworker
days / Number of teleworkers using
transit subsidy
Percent reduction in workdays commuted
to the organization = Average number of
telework days per teleworker / 250 days
(normal work year)
Average amount of transit benefit
reduction = Total amount of transit benefit
collected previously by teleworkers per
year / Number of teleworkers using
transit subsidy
Total Savings = Average amount of
transit benefit reduction X Number of
teleworkers using or previously using the
transit subsidy
Measuring Value Factors
3
Department of Defense, “Instructions for Calculating the Return on Investment for a Mobile Workforce,”
http://teleworkexchange.com/uploads/2000/1211-ROI_Instructions.doc

The Department of Agriculture (USDA)
measures savings in transportation
subsidies as a result of telework. USDA
measured transportation subsidies based
on projections of employees eligible for
telework and those participating in telework
during the 2012 fiscal year. The Department
of Transportation (DoT) usually adds a 10
percent increase to the cost of the transit
subsidy contract program for agencies as
a result of expected new hires. USDA was
able to counteract the 10 percent increase
to the contract by identifying the number of
teleworkers they have and calculating how
many would not need the transportation
subsidy. As a result, USDA was able to save
$2 million from its transportation subsidy
contract with DoT
Agencies can also estimate savings in
transportation subsidies by examining the
transportation subsidies dispensed for
teleworkers versus non-teleworkers or by
comparing transportation subsidies
dispensed before and after an increase in
telework participation.
Environmental Impact
Reduced commuter miles can also result in
decreased carbon emissions, which benefit both
the agency and the environment. Overall, most
agencies have found measuring commuter costs
and transit subsidies fairly straightforward, but
there is more complexity in measuring carbon
emissions. Measuring carbon emissions will
ensure the agency complies with Executive
Order (EO) 13514, which requires agencies
to establish and report a fiscal year 2020
percentage reduction target for agency-wide
greenhouse gas emissions (GHG).
GSA developed a Carbon Footprint Tool to
assist agencies in managing their GHGs
as required by EO 13514 and other recent
energy laws. This tool has the capability to
calculate an agency’s GHG baseline broken
into various scopes, provide assistance on
setting GHG reduction targets, compile a
building-by-building GHG emissions inventory,
and assist in the preparation for reporting
emissions to the Department of Energy’s
(EPA) GHG Reporting Portal. GSA also has
the capability to pre-populate the tool with
agency-specific data. The Carbon Footprint
Tool can be accessed by setting up a profile
at www.carbonfootprint.gsa.gov
EPA provides some basic calculations that
measure carbon emissions for real estate
and commuter emissions:
• To measure estimated carbon dioxide
savings from commute miles avoided:
Start with commute miles avoided. Divide
this by average fuel economy as reported
by the Bureau of Transportation Statistics
(BTS) (23.8 mpg). Multiply this by the
estimated carbon dioxide emissions per
gallon of gasoline as reported by EPA
(8.92 X 10^-3 metric tons)
• To measure estimated carbon dioxide
savings from energy savings: If utility data
are available, consider emissions from
electricity use (home or office). Calculate
the average carbon dioxide emission
rate (6.8956 X 10^-4 metric tons carbon
dioxide/kWh)4
. Then, multiply this by the
estimated energy savings in kWh
Mobile Work Exchange’s RoI Calculator
computes the environmental savings from
teleworking using the number of teleworkers,
number of days employees telework each
week, the average length of employees’
commute, and the average emissions
per commute. To access the RoI Calculator,
visit www.mobileworkexchange.com/
measuringRoI
Transportation and carbon emission savings
will only be significant if there is large-scale
participation in a telework program. Agencies
who strive to save in these areas as a result
of telework should consider various telework
program design elements, such as maximizing
hoteling where possible to decrease office
space and encouraging telework for those with
the longest commute. Carbon emissions can be
further reduced by educating teleworkers about
how to save energy in their homes
while teleworking.
4
For regional estimates of emission/kWh, see http://www.epa.gov/cleanenergy/energy-and-you/index.html

Continuity of Operations
(COOP)
Business continuity, or COOP, is particularly
top of mind for agencies calculating the RoI of
their telework programs. Interruptions in the
continuity of business operations can cost
millions in lost productivity, but telework can
help mitigate those costs by ensuring telework-
eligible employees can continue to do their jobs
from alternate locations.
Some agencies have conducted drills
to determine whether their telework
programs are effective tools for
maintaining operations.
DoT conducted a simulated COOP drill during
Telework Week 2012 to assess telework RoI.
The agency encouraged its entire Headquarters
to telework on the same day5
to test its
network configuration bandwidth. The drill
provided the agency an opportunity to discover
and address connectivity hurdles due to the
increased volume of teleworkers. The drill also
helped to overcome management resistance
by demonstrating successful communication
within teams.
To measure COOP RoI, agencies can also
calculate the difference in productivity rates
and attendance records between teleworkers
and non-teleworkers following an emergency
or inclement weather. For example, the U.S.
Patent and Trademark Office (USPTO)’s telework
program allowed employees to continue business
during the 2010 “Snowmageddon.” The
trademark examining corps produced 85 percent
of the work accomplished the week prior, even
though many other agencies were shut down.
While agencies remained closed for the
second day of Hurricane Sandy in 2012, Patent
examiners maintained a 58 percent production
rate and Trademark examining attorneys
maintained a 79 percent production rate.
The Trademark Assistance Center is the call
center for Trademark owners and attorneys
to contact with general questions about the
Trademark process. During the Hurricane Sandy
closure, the Trademark Assistance Center
(TAC) was fully operational, with 100 percent
participation from the work at home employees.
TAC answered a total of 530 telephone calls
during the two-day closure, of which 99 percent
were answered within 20 seconds of entering the
TAC queue, an 8 percent increase in the average
service level performance for the previous quarter.
Similarly, during the March 6, 2013 snowstorm
that shut down Washington D.C. metropolitan
agencies, Patent examiners maintained an
82.7 percent production rate and Trademark
examining attorneys maintained a 93 percent
production rate. Without telework and hoteling,
the agency would have been much less
productive during this time.
Productivity
Teleworkers often cite an increase in productivity
as a benefit of telework. Many note that they
experience fewer distractions at home than
in the office, and they often report spending
additional time working as a result of avoiding
the commute. While there is strong anecdotal
evidence supporting increased productivity,
there are a few methods agencies can use to
quantify telework productivity.
Because productivity can be difficult to measure,
agencies should take steps to ensure that any data
considered are reliable. In other words, agencies
should use quantifiable data (e.g., number of
patent applications examined by the employees
included in the below USPTO study) in telework and
non-telework scenarios to calculate a comparison.
Because not all agencies have the opportunity
to conduct a comprehensive study to examine
teleworker productivity, leveraging self-reports is
acceptable to attain an estimate. Still, agencies
should recognize that inferring RoI from self-reports
is not always reliable.
5
The agency reported that 62 percent of eligible employees teleworked on this day

The following case studies illustrate how some
agencies are measuring productivity:
The Federal Deposit Insurance Corporation
(FDIC) assesses productivity by internally
surveying managers and employees
on their perceived productivity when
teleworking. Managers indicated that
employees are more productive or just as
productive teleworking as they are in the
office. Employees indicated they are more
productive teleworking than when they are
working in the office
USPTO conducted a comprehensive study to
measure telework productivity and efficiency
by comparing the work of patent examiners
participating in their Patent Hoteling Program6
(PHP) to the work of examiners working at
headquarters. The agency collected data
for production, performance ratings, and
time and attendance between January 2006
(when PHP was officially launched) and March
31, 2011. The analysis indicated that PHP
participants spent 66.3 more hours6
(out
of the total time they worked, not including
overtime) per year examining patents. The
additional time resulted in about 3.5 more
applications reviewed annually
Agencies also report that a reduction in
administrative leave is a meaningful measure of
productivity gained through the implementation
of a robust telework program. GSA reports that
as of April 2013, the agency saved 14,844
hours or approximately $742,215 by enabling
its employees to seamlessly work remotely
through emergency situations that normally
would warrant paying out administrative leave
with no return on investment. During the pursuit
of suspects of the Boston Marathon bombings
of April 15, the agency communicated through
email to area employees advising them to
telework if they were able. The agency reported
that its staff was able to safely work from home
or an alternate location as the Shelter in Place
order was issued by the Governor. The agency
maintained normal operations and continued
to function at full capacity in an emergency
situation which resulted in a lockdown of the City
of Boston.
The HAF Telework Program developed
calculations7
that an agency can use to
assess teleworker productivity. An agency
can collect data from its teleworkers to use
in the following formulas:
Total number of teleworkers = Sum of all teleworkers
regardless of telework role
Total number of teleworker days per year (based on a
50 week year)
Number working one day per week = (n) X 50
Number working two days per week = (n) X 100
Number working three days per week = (n) X 150
Number working four days per week = (n) X 200
Number working five days per week = (n) X 250
Total teleworker days per year = SUM
Average number of days worked per teleworker per
year = Total number of teleworker days per year /
Total number of teleworkers
Number of additional hours worked per teleworker =
Average number of days worked per teleworker per
year X Total number of teleworkers
Average annual value added per teleworker =
Average hourly wage X Number of additional hours
worked per teleworker
Total annual value added = Average annual value
added per teleworker X Total number of teleworkers
Recruitment/Retention
Retention measures refer to the number
of employees an agency can retain as a
direct impact of telework programs. In other
words, this measure indicates the number
of employees who choose to remain with
an agency because they have the ability to
telework. This is important to measure because
increased retention reduces expenses for
agencies. The more employees an agency
can retain, the fewer costs they will have
for recruitment, selection, on-boarding, and
training. Most agencies already have specific
6
Employees who participate in PHP work from home at least four days a week. At the end of fiscal year 2011, more than
2,600 patent examiners were participating in PHP
7

cost estimates for how much money is saved
by retaining employees. However, for a telework
RoI calculation, an agency must determine
the percentage of employees remaining in the
agency because of workplace flexibility.
USDA assesses retention associated with
telework through employee surveys, such
as the Federal Employee Viewpoint Survey
(FEVS). The FEVS has a survey item that
relates to retention (e.g., are you considering
leaving your organization within the next
year, and if so, why?). USDA compares
the teleworkers’ response to the non-
teleworkers’ response to ascertain whether
retention is related to telework availability.
Additionally, USDA plans to evaluate cause
and effect by using data from entry and exit
surveys as a source of information to assess
the influence telework may have on retention
FDIC uses a very similar approach. The
agency administers internal surveys to
employees to gain perspective on retention
as it relates to telework. Results of the last
administered survey show that employees
see telework as a reason to stay in their
current positions
The HAF Telework Program developed
an equation8
that measures employee
retention. First, an agency must calculate
the average cost to recruit an employee
into its organization. If this information is
not readily available, OPM provides average
figures for retention. Next, the agency
needs to compare the average attrition rate
from the five years prior to implementing
an agency-wide telework program to the
average attrition rate for the five years after
implementing an agency-wide telework
program. Multiplying this figure by the
average recruitment cost generates an
estimate for how much an agency saves on
retention/attrition due to telework
The HAF Telework Program’s formula provides
a good estimate for telework RoI as it relates
to retention/attrition and can provide an
agency with a tangible value for cost savings.
In addition, the formula is not too complex, and
the information needed for the formula is readily
accessible. Still, USDA’s and FDIC’s methods
of surveying their employees or analyzing the
FEVS results are also valuable. While specific
savings cannot be derived from these analyses,
surveying employees can provide a basis for
an RoI estimate as it relates to retention. This
approach is relatively easy to implement, and
the data can be used for a variety of purposes
by the agency. For instance, the FEVS contains
several items that are useful for analyzing how
telework relates to the employee (accountability,
empowerment, job satisfaction, perceptions
of supervisor, etc.).
Overall, agencies should strive to use a formula
similar to the HAF Telework Program’s to obtain
an actual cost savings on retention, but agencies
should continue to survey new, current, and
departing employees to identify relationships
between telework programs and employees’
intentions of joining, leaving, or staying with the
agency. Survey results can support the cost
savings number, and the results can determine
factors related to telework program effectiveness.
Real Estate
Telework can have a direct impact on an
agency’s real estate costs by reducing the
amount of necessary office space. For example,
desk sharing can dramatically reduce office
space by allowing two or more employees to
share one workstation. The employees sharing
the workstation can determine a working
schedule for the space that will generally
allow each a few days in the office per week.
Alternatively, hoteling allows employees to use
non-dedicated, non-permanent workspaces
assigned for use by reservation on an as-needed
basis. While the cost savings associated with
real estate and utilities may be difficult to
ascertain, there are a few methods an agency
may find feasible to use.
For real estate costs, agencies can examine the
cost to lease or purchase office space for all of
their employees entirely, regardless of telework
status, and compare that to current real estate
8

costs. In other words, if agencies can estimate
how much they would spend on real estate to
accommodate the entire agency and deduct
what they actually pay, this will give an estimate
of current real estate savings due to telework.
This method does not produce an accurate
number of dollars or square-footage saved,
but it does provide an estimate. It is difficult to
precisely determine the cost of real estate if all
employees were located in a traditional office
setting as this is based on changing costs of
leasing and purchasing office buildings, the
locales of the office buildings, and changing
taxes for real estate.
GSA developed and is currently implementing
a Project Planner tool to assist agencies in
measuring RoI related to real estate and
utilities. The tool uses the consolidation of
space, how an agency will utilize its current
space (e.g., hotel spaces, cubes, open
space, etc.), the number of teleworkers
and how often they telework, along with
other variables to estimate how much RoI
an agency can expect from consolidating
space. At present, this tool is only available
internally; however, GSA plans to make
the Project Planner tool available to the
public sometime in 2013. Until the tool is
released externally, GSA noted that agencies
can request to obtain it by contacting the
agency. GSA is currently using the tool
on a consolidation of real estate project
in Washington, D.C. The agency is in the
process of overhauling its headquarters
office into open space and hotel space.
By updating the space and expanding its
telework strategy, two area offices will have
employees reassigned to the headquarters
building – increasing the number of
employees working there from approximately
2,500 to 4,200. While there are substantial
upfront costs to update the facility, GSA
estimates that it will save $20 million
annually in real estate and utilities costs
FDIC assesses real estate savings from
telework. Certain FDIC jobs are eligible for a
home based program (i.e., full-time telework)
because their work requires them to visit
financial institutions in addition to working in
the office. When these employees’ field office
lease expires, these employees are asked
if they would like to work from home full-
time. As a result, FDIC has procured smaller
offices for the employees who opt out of
the home based program. FDIC determined
these numbers by comparing the costs of the
new leases to the cost of the leases prior to
implementing its home based program. Past
savings over the course of a five year lease
have averaged approximately $14,000 per
employee. The FDIC continues to monitor
and assess these savings
The HAF Telework Program has
developed specific calculations8
for
determining RoI related to real estate
that are relatively simple to perform.
The following formulas can be used
to determine the amount of real estate
savings from telework:
Number of leased spaces eliminated = Number of
full-time teleworkers in leased spaces – Number of
leased hotel spaces
Number of owned spaces eliminated = Number of
full-time teleworkers in owned spaces – Number of
owned hotel spaces
Number of square feet of leased space eliminated =
Average square foot per person X Number of leased
spaces eliminated
Number of square feet of owned space eliminated =
Average square foot per person X Number of owned
spaces eliminated
Leased Real Estate Savings = Cost per square foot X
Number of square feet of leased space eliminated
Owned Real Estate Savings = Cost per square foot X
Number of square feet of owned space eliminated
Total Real Estate Savings = Leased Real Estate
Savings + Owned Real Estate Savings
USPTO assesses the amount of real estate
savings it incurs for each teleworking
employee based on the amount of office
space it can avoid. The USPTO study
demonstrates that the agency saves
$1,710 for an employee’s first year of
full-time telework and in subsequent years,
the agency saves $3,385 per full-time
teleworker. There are less savings in the first
year of full-time telework because of costs
incurred from IT setup and equipment

The ease of measuring real estate and utility
savings depends on how an agency chooses
to assess these variables for its telework RoI
calculations. The 2012 Telework Report to
Congress noted that many agencies are taking
steps to eliminate or reduce office space, but
few are able translate the savings into dollar
figures or square-footage saved. Calculating
real estate is not too complex, but it does
require knowing the information to a number of
variables (e.g. cost per square foot, number of
square feet eliminated, number of teleworkers in
leased spaces, etc.). Accordingly, the formulas
are straightforward, but obtaining and recording
the information for the formulas can be tedious.
Agencies should be advised that cost savings
due to real estate will require long-term
planning, and may take several years and
iterations before any real savings are attained.
Selling property, re-negotiating leases, or waiting
for leases to expire takes time, and an agency
must account for this when investigating real
estate and utilities RoI.
Utilities
Utility costs are a related value factor. Agencies
do not need as much office space if they have a
large number of teleworkers, and consequently,
they will spend less on utilities such as
electricity, gas, and water.
USDA estimates utility savings by
keeping metrics on the agency’s average
expenditures on utilities throughout the
year. To determine utility savings, the
agency compares its average utility rate to
the rates used during Telework Week each
year. During Telework Week 2012, USDA
encouraged telework eligible employees
to telework for at least one day during the
week, and to report if/when they did. The
agency used this data to calculate that utility
savings during Telework Week 2012 equated
to what would be used in the equivalent
of 50 homes in the span of one week.
While the amount of utilities saved during
Telework Week may be low, USDA noted
this would add up to a significant amount if
the same number of employees teleworked
every week. Calculating utilities savings is
complex and may require additional study
by the agency. For example, USDA relies on
its Office of Operations to generate utilities
savings during Telework Week rather than its
Telework Managing Officer
EPA provides agencies with a basic approach
to calculating energy savings. An agency
can estimate energy savings by subtracting
the energy used after a telework program is
implemented from the energy used prior to
implementing a telework program. An agency
can take steps to adjust the baseline and
the post-telework program energy use to
account for factors other than telework that
affect energy consumption (e.g. weather,
building occupancy, operating hours)
MobileWork Exchange RoI Calculator
Mobile Work Exchange’s RoI calculator uses agency
answers to six key questions to calculate telework
RoI for the following value factors:
Transit subsidies
Environmental impact
COOP
Productivity
Recruitment/retention
Real estate/utilities
Using the Mobile Work Exchange RoI calculator
generally requires agencies to make estimates
or assumptions based on available data. The
calculator also relies upon industry standards to
determine calculations. As such, the calculator
may not generate an exact measure of an agency’s
RoI; however, using the calculator does generate a
reasonable estimate of agency telework RoI. The RoI
Calculator is available at www.mobileworkexchange.
com/measuringRoI.

Conducting a comprehensive RoI study requires setting the stage (e.g., defining telework roles,
frequency, and outcome goals), determining the appropriate value factors to measure, calculating
cost factors, identifying valid methods for measuring the value factors, obtaining and using a reliable
telework tracking system, and controlling for other variables.
Agencies should strive to accurately measure RoI by gaining knowledge from best practices like those
presented here, seeking advice from other agencies that have experience in this area, and gaining
buy-in from leadership to obtain more resources when needed.
Overall, agencies should measure telework RoI using the most appropriate tools available to them.
Even without the capability to conduct an in-depth RoI study, agencies should use the knowledge and
resources they currently have. For instance, every agency has access to the FEVS, and it contains
several items that are useful for gaining insight on telework RoI. Agencies can assess employee
attitudes and retention from various survey items by comparing the responses of teleworkers to
non-teleworkers. An agency can also easily create and administer internal surveys if they want more
detailed information on how telework impacts their employees and the organization. Additionally,
this snapshot report offers basic methods that do not require significant resources for measuring
various value factors. When using these basic methods, however, agencies should exercise caution in
assuming the findings are a direct result of implementing a telework program. The causal relationship
is not always clear because other factors besides telework may have affected the findings.
Recommendations

We would like to thank the following individuals for their valuable insight:
Monica Babine, Washington State University Extension & College of Arts and Sciences
Susan Boosinger, Federal Deposit Insurance Corporation
Danette Campbell, Patent and Trademark Office
Mika Cross, Department of Agriculture
Brodi Fontenot, Department of Transportation
Charles Hardy, General Services Administration
Nathan Maenle, Defense Information Systems Agency
Richard Slusher, Headquarters Air Force
Sharon Wall, General Services Administration
Kim Wells, Office of Personnel Management
About Mobile Work Exchange
Mobile Work ExchangeSM
is a public-private partnership focused on demonstrating the value of
mobility and telework, and serving the emerging educational and communication requirements
of the Federal mobile/telework community. The organization facilitates communication among
Federal IT directors/managers, CIOs, CHCOs, and telework managing officers focused on building
a sustainable and effective mobile workforce. For more information on Mobile Work Exchange, visit
www.mobileworkexchange.com.
About OPM
The Office of Personnel Management’s mission is to provide technical assistance to Federal
agencies to meet their most critical human capital challenges. Human Resources Solutions (HRS) is
the OPM division dedicated to providing exceptional human resources products and services to meet
the dynamic human capital and training needs of the Federal Government. HRS’ HR Strategy and
Evaluation Solutions (HRSES) organization offers a suite of services that help agencies implement
effective telework programs, such as telework policy audits, training, and telework program
evaluation. For more information on these services, visit www.opm.gov/services-for-agencies/
telework-management/. For more information about OPM’s HRS division, visit www.opm.gov/HRS.
Thank You

Measuring Telework RoI

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