Cost Justify

Cost Justification - Two Methods

Its all about improving employee attitude and retention

Good employee attitude and retention is simply a reflection on the employer. Making the environment a pleasant place to work by adding plants is only one way an employer can look after staff. Plants are important. We have noticed that when offices are reorganised that staff ensure that "their plants" are moved with them.

Studies in America are showing amazing results in regard to employee attitude and retention. They claim 12% improvement in productivity where plants are being used.

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Cost Justification Spread Sheet

Download the spreadsheet and plug in your own figures.

Conclusion

From the calculations below it can be seen:

The cost of maintaining your own plants is equivalent to hiring them and a lot less trouble

In an office of 10 staff productivity gains of $60,000 can be achieved.

Method 1 - Cost Justification, based on productivity gains.

One plant = $200 per year, ie only 0.4% based on a $50,000 salary

For this you can increase productivity by 12%

That is the same as employing 12% more staff

In dollar terms, 12% X $50,000 = $6000 per person

Productivity increase of $6000 per person for cost of $200

Method 2 - Cost Justification, based on owning 11 plants.

Work Description	Calculation	Total per Annum
Servicing of Plants One staff member will take 1 hour to water and service 11 plants plus a conversation or two. At $25,000 per annum this is $12.65 per week.	$12.65 X 52	$658.00
Purchase of Planters Say 2 upmarket pots at $150 each 9 industry standard at $30	2 X 150 9 X 30	$570.00
Purchase of Plants 11 large plants at retail prices is about $500. These plants will need replacing every year.	1 X $500	$500.00
Buying and Delivery of Plants When plants need replacing who is going to buy them, where and at what price. Staff will need to do it at a weekend or during a day. This includes, setup, clean up, white stones or coco-nut fibre as a mulch. Also - you will need to get rid of the old plants. Actually twice a year is hypothetical because they don't all need replacing at the same time. So this activity is required several times a year for one or two plants at a time.	1 day every year at $96.00 per day	$98.00
Management of Associated Activities The person allocated to "look after" the plants will have issues, water stains on the carpet or because they are not trained in horticulture. Therefore management will be involved, to resolve issues, make decisions and generally waste time.	Say 1 hour 12 times a year, at $60,000 per annum	$364.00
Total cost of owning and servicing 11 plants in the first year		$2,190.00
Our Price for the same thing		$2,000.00

Consider This

It costs from $1 - $10 per month per staff to have indoor plants (depending on the plant-staff ratio).

Why not ask the staff if they will work an extra 10 minutes a week to pay for the plants.

I am sure they will.

Also see "we do the work"

Note: These figures do not even consider the high cost of staff turnover. If you can retain one good employee you must be ahead and plants can help.