What 1 Hour a Day Surfing the Web Costs You

Do you know what it costs your company when your employees browse the web? Stop here and see if you can come up with a number, then read on…

Most business owners realize but cannot approximate what it costs the company for employees to surf the web. What you need to consider are the costs incurred when the computer network is operating slower than normal. The increase in viruses, the increase in spyware, and reduction in available computer resources that results in a significant loss in productivity and increase IT service costs.

In the case example below, I have only calculated what we have discovered through mathematical means and research from our valued partners.

Case Example

At an average sized small business consisting of 25 employees (known as company A), let us assume each employee utilized 1 hour per day for personal web browsing.

Calculations  

The potential loss productivity from 25 employees surfing the web 1 hour per day X total number of work days per year would equate to a loss of $107K per year. That equals approximately $4,285.71 per employee per year. WOW.

 

Changing the Equation

Situation 1: Let us say that company A provides employees 2 weeks of vacation per year. 2 weeks of vacation time must be removed from the annual cost, which would reduce the annual loss to 97K.

Situation 2: Accounting for IT service support – assume 1 hour of IT service is required per employee per month to keep the computers functional at a rate of $150 per hour X 25 employees which equals an additional $3,750.00 per month in support costs. Annually $45,000.

 Situation 3: Let us also say that company A is a service company and there are approximately 10 less work hours being performed on a daily basis because the network has slowed down considerably. I would take into account the potential revenue lost in opportunities (sales, billable hours, etc). The real cost will show how efficient the current processes are and where gains and savings can be made.

How can you save? Find an IT service company that can provide total support for a set price. In that fashion, your IT budget is known 12, 24 or 36 months out. Technical resources would then be available to assist in monitoring web-visits, being proactive about the network and taking the load off the owner’s shoulders. Don’t forget that the owner’s time also costs money which far exceeds $15.00 per hour.

Here are 3 quick tips you can use to combat decreased network resources and reduce the number of hours employees are surfing the web while reducing costs:

 

1. Retain an IT service company to antivirus and anti-spyware services
2. Require the IT service company to proactively monitor and repair any issues pertaining to antivirus and spyware for a set monthly fee – this will help control the costs and put the responsibility on the IT service company to perform more efficiently.
3. Monitor and record monthly web traffic

5 Steps you can take to curb personal web surfing:

 

1. Have your IT company start logging all web visits
2. Review web visits report on a monthly basis
3. Communicate your concern to your staff and listen to their feedback
4. Do not make an example of any one employee to communicate your concerns
5. Educate your staff what it is costing the company to surf the web

Bonus:

Create a company policy to assist in communicating your concerns.

Realize that creating an Internet use policy is a conversation. If you order and demand compliance from the staff like a 17^th century ship captain, you risk disconnecting with your staff, stifling innovation and fostering ill will. The preferred path is to share why you are concerned and listen to the feedback provided by your team.

Take Away: Operational expenses can quickly consume a business’s profitability in a blink of an eye. If you are not continuously collecting data, analyzing costs and looking for opportunities to improve operations, identifying problem areas will be impossible. The task is difficult enough when the costs are known and tightly controlled. Do you think your competition is making the same mistake?