5 Facility Management Software Budget Considerations
With the events of the past year accelerating workplace transformation, there has never been a better business case for investing in facility management software.
The need to maintain a safe work environment, manage a hybrid workforce, boost in-office collaboration and improve the employee experience is leading many organizations to embrace new technologies.
Verdantix predicts companies will increase spending on facility management solutions by 13% year-over-year through 2025.
However, many facility management leaders still struggle to find the budget for FM software.
As you weigh your options, you’ll likely encounter these five budgeting questions. Here’s how to address them.
Facility management software budgeting considerations
How much will it cost?
When it comes to facility management solutions, there’s a wide range of complexity and cost. The most basic CMMS software, designed to manage work orders and preventive maintenance, may cost less than $100 per month, per user, while EAM software typically costs more.
CAFM software typically doesn’t cost as much as a full integrated workplace management system (IWMS), but its functionality is much more limited. IWMS software may cost several thousands of dollars per month or more, depending on its complexity.
Are there any hidden fees?
To get the most accurate cost estimate upfront, make sure you’ve accounted for any additional fees your facility management software vendor might charge. It’s frustrating to discover you have to pay extra for services you thought were included, such as customer support, fees for routine maintenance and upgrades, and even cancellation fees if you decide you no longer want to use that solution.
Should our software costs come from our CapEx or OpEx budget?
As more companies invest more in software-as-a-service (SaaS) solutions, this question is becoming increasingly common. Though traditional facility management software systems often fall firmly in the capital expense category, SaaS solutions are different.
Most capital expenditures carry a large upfront cost, either in a full payment or in a substantial down payment. Cloud-based facility management software does not. One of the biggest benefits of cloud software is that you pay for it over monthly or annual installments instead of a large cash outlay. SaaS is much more like paying for utilities, making it an easy and natural fit for the OpEx budget.
Additionally, capital expenses are usually investments you can eventually resell to recoup some of the original cost. As a low-cost, long-term solution, facility management software is a digital asset, not a commodity to resell. Unlike physical equipment that depreciates, facility management software typically becomes more valuable over time.
While it doesn’t fit well into the CapEx section of your company’s tax returns, it is a deductible expense in the same way that you deduct the costs of cleaning services, HVAC maintenance, contract workers, waste management, legal services, and utility bills. It fits nicely with other daily operational expenses.
How can we avoid paying for more than we need?
Some enterprise software solutions are so large and complex, you end up paying for a host of features you never use. This is especially true with on-premise solutions that are expensive to implement, maintain, and update. By the time you realize you’re only using a few elements of the software, you’ve invested so much into it that it can be difficult to justify switching to something else. You may not have the budget available for a new facility management solution for another year or two. That’s why it’s essential to make the right decision the first time.
In addition to choosing cloud-based solutions that don’t require all the costs of maintenance and upgrades, look for facility management software that scales with your company.
You should be able to choose from a variety of different features and functions based on your needs, rather than being forced to decide between a few standard packages.
This is one of the biggest advantages of iOFFICE’s facility management software. Once you have space management software, you can easily add other functionality, including move management, desk and room reservations, service requests, visitor management, and a mobile app to improve the employee experience.
Many facility management solutions are based on the number of users, so it’s important to consider how many people will need access and what permissions they’ll need. Your FM team will likely need administrative access to all the key functions, while HR managers may only need to see a seating chart. Executives will most likely want to see a high-level overview of building occupancy and costs.
When can we expect to see a return on our investment on facility management?
Facility management software can be a substantial investment, so this is a question worth asking. You want to be sure any solution you choose will pay dividends in the form of better space utilization and reduced real estate costs, increased efficiency, and even employee productivity gains.
Fortunately, if you’re considering iOFFICE, there’s good news—over a fourth of our customers report seeing immediate ROI.
That may come from eliminating expensive legacy systems or unused office space, or implementing flexible seating to boost employee-to-desk ratios. Another 34% of customers reported ROI within three months, while 14% said the software paid for itself within six months.
As you build the business case for facility management software, make sure to factor in these considerations:
- What systems or technology could you eliminate?
- How many employee hours will you save?
- How much could you save by reducing building operating costs?
- Will the software still support our needs five years from now?
The best facility management software will give you the foundation to support the changing needs of your workplace.
Take the next step toward investing in facility management software
Now that you have a better idea of what to expect when it comes to budgeting for facility management software, it’s time to build the business case for it. Take the time to estimate your costs and potential savings, and outline them all in a way that’s easy to understand. Don’t forget to include indirect savings too, like the increased productivity you can expect when employees no longer spend 15 minutes each day searching for desks or meeting rooms.
Next, put together your implementation timeline and assemble a team of people, including representatives from FM, HR, and IT. Getting buy-in from the IT team can be one of the biggest challenges, so involve them in the process as soon as possible.
You’ll know you’ve found the right solution when it’s affordable but comprehensive, produces fast returns, and is easy to implement.
iOFFICE’s facility management software checks all those boxes. You can purchase a single module or a fully integrated solution, so you’ll only pay for what you need. Because the subscription fee is all-inclusive, you’ll never be surprised by hidden fees.
Ready to estimate your savings? Request a 15-minute consultation today.