How much does chat cost?

How much does chat cost?

chatChat has been there for years now. It evolved mainly from IRC like mIRC to today’s better chat options like MSN Messenger, Yahoo Messenger, GoogleTalk, etc.

Most of us chat for personal communication or for fun and now corporate chat clients are also making place in corporate environments but have we ever thought or calculated what does chatting actually cost to a company?

Let me give you taste of what you lose when you allow chat in a corporate environment.

Let us say, you have a company with ten people. You have allowed chat over your corporate network. Usual chat pattern of people is 10 seconds of chat and 10 seconds of work, that is, they chat for 10 seconds and then switch window to work and then switch back. This thing goes on through out the day.
10 seconds chat and 10 seconds work means that the person is just working half the time. So if a routine workday is 8 hours, the person is only working for 4 hours.

Let us go further and do some calculations.

If you pay an average $10 an hour for an 8 hour day, you are paying $80 a day.

Multiply this amount by 20 working days a month, you are paying $1,600 a month.

By allowing to chat in your company, you actually are paying $20 per hour and not $10 because keeping in mind the 10:10 chat pattern, the person is working half day.

In other words, you are paying $800 per month extra for just chatting.

So at $10 per hour, 8 hours a day, 20 days a month and 12 months a year, you are paying $19,200 per year.

Since the person works half day and chats the other half, you actually are paying $9,600 for not doing any company work.

This is not all. Remember, I just mentioned above that your company has 10 people so let us multiply it by 10. This makes $96,000 per year for wasting time.

What if the average salary is $20 and not $10. You are paying $192,000 extra.

Do this calculation with your own company size and average salary, you will understand what you are losing.