ges, benefits, and the cost per square foot for their personal space. This study shows that the cost per square foot will decrease from $5.63 to $5.16 per month, so if each employee were allotted 200 sq. ft (Dess), then the annual cost savings by eliminating three positions alone would be worth $1,800. Their salaries and benefits come to nearly $150,000 between the three of them; therefore, the aggregated savings through eliminating these three positions could total $151,800 per year.As observed in a random survey of 70 employees, nearly all surveyed agreed that the distance between buildings was creating productivity issues for them. Eighty-seven percent replied that they spent over 1 hour per week traveling between the two buildings. In fact, 20% stated that they spent over 5 hours between the two buildings (see Tables 2, 3, and 4, below). A copy of the survey form is attached as Appendix A. Table 2. Survey Results Data Question #1234Strongly Agree2042557Agree332048Agree Somewhat1412Disagree38Strongly Disagree22No Opinion383Total70707070Table 3. Survey Results Questions 1-4 Table 4. Survey Results Question 5 The company should be careful to understand that simply moving into one building doesnt mean that productivity will automatically increase by 87%. However, it could mean that communication between associates would be greatly facilitated and there will likely be an improvement in efficiency (Dess). While it is difficult to put a price on efficiency, the purpose of this survey was to determine if there was a general preference one way or another before promulgating this decision.The actual cost savings of consolidating the two facilities into one is $60,100 in operating costs, plus a potential $151,800 in headcount reduction, totaling $207,900 per year. Since the savings are greater than the first years operating costs, SSB will actually be making money by consolidating their facilities. Savings of this magnitude can easily ...
