What implicit costs should be included in a workspace cost per person calculation?

Asked 2 years ago

Hello everyone, I’m re-evaluating cost per employee to determine the total cost of providing a workspace for each person in our organization. While I have a good understanding of the explicit costs involved, I'm not sure what implicit costs should be included in the calculation. Would anybody be able to provide examples of these implicit costs so that I can ensure our cost per person calculation is as accurate as possible? Thanks in advance.

Implicit costs Workspace cost per person Calculation

Scotty Church

Monday, April 03, 2023

When calculating implicit costs in a workspace, the cost-per-person calculation can include factors that don't actually have a direct monetary value. However, they can still impact overall costs. Some examples of these implicit costs are:
Loss of productivity: The cost of decreased employee output due to factors like inefficient workspace layouts, distractions, or lack of amenities. 
Employee turnover: All costs associated with hiring, training, and onboarding new employees as a result of the potential dissatisfaction with the workspace. 
Opportunity cost: The value of potential opportunities that are lost when resources are allocated to one use over another, such as investing in additional workspace versus other business growth opportunities. 
Workspace flexibility: The cost of limited adaptability to changing business needs, which may impact your organization's ability to quickly adapt to new work styles or employee requirements. 
All in all, considering these costs can help you develop a much more comprehensive understanding of the true cost per person in your workspace.