Finding Your Value Proposition in 5 Easy Steps
Defining the value you’ll be bringing to a company is tough.
To any consultant, this is what shows their value. To everyone else, it’s a bit hard to really quantify how much value you bring to your company.
Luckily, that’s where companies like GlassDoor come in to help out. It works great to see how much people of your field at “x” company make in comparison to you. It also helps you look at job prospects and what you can anticipate making at future places.
For the standpoint of being an automation consultant, we want to save the company time.
1. Gather Relevant Statistics
Here are a handful of stats I had gathered from various sources. Unfortunately, I did all this research a few weeks ago and lost all the sources. (If the need arises, I’ll try to gather all those)
The average person….
Spends 6.8 hours on email a day.
Takes 4.1 minutes to write an email.
Checks their work email at home. (~63% of people check their work emails at home)
1.8 hours a day are spent looking for files on a computer.
In Europe drives 9 miles to work each day. (Let’s consider this America for this purpose)
Drives 25 minutes to work.
Now we have all this information, what do we do with it?
Well, nothing yet, but It’ll come in at the end to see with all the time spent, how you can relate your value.
2. Find salaries of employees
This one’s really easy. Now if you’re going to provide value to one specific person’s job, how much do they make? For instance, let’s look at Apple.
Go to Glassdoor.com.
Let’s choose a job that has a yearly salary, just to add to some complexity. Since the top one is Software Engineer, let’s use that as our example.
Their average salary is $122,077 a year. (First off, wow, I should consider a career change)
Just so we have nice numbers, let’s round that down to $122,000.
Now, typically, jobs have about 2 weeks of off time a year. This accounts for sick days, days off, or whatever else.
So now we have 50 weeks a year, 40 hours a week.
$122,000/50=$2,440.00 a week.
$2,440.00/40=$61.00 an hour. Then just because we’ll probably need it later, let’s see how much they make a minute.
$61.00/60=$1.02 or about $1.00 per minute, obviously.
Ok cool, we have that now. What’s next?
3. Calculate the amount of jobs you can find.
Here, to save time, we get a little laxed with the precision. We’re looking for a ballpark figure to see how much we’re saving. We don’t need to be exact. This will give us a figure that we can use for later.
Where I cut corners is usually the tallying of employees. I will stop when I see the same job posted twice, but with a different job title. I’ll usually go until I see this twice, just to give it the benefit of the doubt.
We’ll basically be tallying up the amount of salaries we see.
Let’s do a quick count.
Specialist — Hourly (746)
Mac Specialist (Apple Store) — Hourly (651)
Software Engineer (539)
Mac Genius — Hourly (484)
Family Room Specialist — Hourly (461)
Apple Retail Specialist — Hourly (346)
Redzone Specialist — Hourly (302)
Apple Genius — Hourly (292)
Apple At Home Advisor — Hourly (240)
Apple Family Room Specialist — Hourly (216)
Sales Specialist — Hourly (213)
Senior Software Engineer (213)
Mac Genius (201)
Ok so we have 2 Family Room Specialists and 2 Mac Geniuses. Great.
Now quick tally of all these employees
Whew, the automation side of my mind is kicking myself for that… Should’ve… Used… Excel…
4. Finding the impact of our clientele
Now we have a lot of numbers here.
Keeping in mind our Software Engineers, we want to save them money. We need to calculate the percentage of them, easy enough.
So roughly 11.7% of the company are software engineers. Great. But how many is that in total? We’ve only been referring to the employees who left a review.
Back to the internet. This part could get a little hard. How many employees do they have?
Luckily, I’ve chosen Apple, so getting some information on them is pretty easy. Otherwise, companies often tote how many employees they have on their website or at least give a ballpark.
Now here’s the stat I found.
Apple has about 120,000 employees based on this.
How many software engineers does that give then?
120,000*11.7%=14,040 Software Engineers.
A good handful.
5. The wrap-up.
We have about 14,000 people who do many things per day.
Let’s toss some stats onto this figure.
If you invent something that can save only 1 minute a month for these engineers, that’s a $14,000 savings per month for Apple.
Now, let’s save them from sending one email per month.
$56,000 a month
How about we have them reduce one email a week.
$224,000 a month
Wow, this compiles fast. We just let them hire 22 more people.
How about one email per day?
$1,120,000 PER MONTH.
Now, let’s get crazy with this.
Let’s say we create a solution that completely eliminates the time they have to spend looking for documents.
Calculating from our $/minute equation, we’ll have…
$1.02*144minutes/day*5days/week*50weeks/year= $36,720 per year. With only 1 employee.
Yes, half a billion dollars.
I think that would be a good investment for Apple.
Of course, this doesn’t factor in the additional work that people would be able to get done in the minutes/hours/days they no longer have to spend on these time-sucking tasks.
Now, you know how to create value. Of course, if this were presented to a smaller company, you need to have a much bigger impact to show your value.
Originally published at www.goodjobzack.com on October 19, 2016.