Telecommuting Benefits: The Bottom Line for Companies, Employees & the Community

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Telecommuting Benefits: The Bottom Line. Webinar slidedeck based on a Citrix GoToMeeting-sponsored white paper released in June 2010. …

Telecommuting Benefits: The Bottom Line. Webinar slidedeck based on a Citrix GoToMeeting-sponsored white paper released in June 2010.

© 2011 Telework Research Network - All Rights Reserved

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  • 1. Workshifting Benefits: The Bottom Line Kate Lister & Tom Harnish TeleworkResearchNetwork.com Sponsored By:
  • 2. About
      • Undress For Success: The Naked Truth About Making Money at Home (Wiley 2009)
      • Finding Money: The Small Business Guide To Financing (Wiley 1995) (Revised 2010)
  • 3. Research
    • 250+ Studies
    • Researchers
    • Advocates
    • Naysayers
    • Employers
    • Employees
    • Venture Capitalists
  • 4. Definition “ All telecommuters are teleworkers, but not vice versa.”—Jack Nilles
  • 5. Workshifting Benefits: The Bottom Line
    • Employers
    • Employees
    • Community
    2010 Total Rewards Conference & Exhibition TeleworkResearchNetwork.com
  • 6. Telework Savings Calculator • Used by legislators, community advocates, and Fortune 500 companies in U.S. and Canada to promote workshifting initiatives • Available for every City, County, Metro Area, Congressional District, State in U.S.
  • 7.
    • Benefits Quantified
    • •  Company
      • - Productivity
      • - Real Estate
      • - Electricity
      • - Absenteeism
      • - Turnover
    • • Individual
      • - Gas/auto
      • - Food
      • - Clothing
      • - Daycare
    • • Community
      • - Oil
      • - Greenhouse gases
      • - Traffic accidents and costs
      • - Highway maintenance
  • 8. T elework Savings Calculator - Sources
  • 9. Custom Savings Calculator
  • 10.
    • Workshifting Benefits:
    • The Bottom Line For Employers
  • 11. Employer Benefit: Productivity
    • Fewer Interruptions
    • More Effective Time Management
    • Empowerment
    • Flexible Hours
    • More Hours
    Businesses lose $600 billion a year in workplace distractions.
  • 12. Employers Benefit: Productivity
    • Employees admit to wasting two hours a day.
    • Best Buy’s average productivity increased 35%.
    • 75% agree that flexible work increases productivity.
    • Dow Chemical estimates a 32.5% increase in productivity.
    • Assumptions:
    • Avg. Salary = $32,000
    • - Productivity Increase = 27%
    Annual Increase in Productivity for Businesses Telecommuters 50 100 500 U.S. $ Increase $288,176 $576,351 $2,881,756 $235.4 B Man Years 7 14 68 5.5 M
  • 13. Employers Benefit: Facilities
    • More Efficient
    • More Flexible
    • Scalable
    • Hoteling / Hot Desking
    • Other Costs: parking, furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, compliance costs
  • 14. Employers Benefit: Facilities
    • Sun Microsystems saves $68 million a year in real estate costs, $3 million a year in reduced power consumption, and $25 million a year in IT expenditures
    • Unisys reduced its real estate costs by 87% through telecommuting.
    • McKesson Corporation’s telework program saves >$1 million a year in RE costs.
    Assumptions: - Fully-loaded office cost = $43/sf - Reduction in office space = 18% Annual Saving in Real Estate & Electricity for Businesses Telecommuters 50 100 500 U.S. RE/Electricity $151,846 $303,692 $1,518,462 $124.0 B
  • 15. Employers Benefit: Absenteeism
    • Stress
    • Exposure to Illnesses
    • Occupational / Environmental Hazards
    • Driving accidents
    • Working While Sick
    • Job dissatification
    Telecommuting has proven to be the 2nd most effective method of reducing absences behind flexwork in general
  • 16. Employers Benefit: Absenteeism
    • Unscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion per year for U.S. companies.
    • AMA data and U.S. GSA telework model shows a 63% reduction in unscheduled absences per teleworker.
    • 64% of managers felt reduced absenteeism was a strong reason to allow flexible work.
    • Assumptions:
    • Reduced absenteeism = 3.7 days/yr
    • - Annual cost per unscheduled absence = $310
    Annual Saving Due To Reduced Absenteeism for Businesses Telecommuters 50 100 500 U.S. Absenteeism $56,700 $113,400 $567,000 $46.3 B
  • 17. Employer Benefit: Attraction / Retention
    • Among top non-financial benefits
    • Expands talent pool
      • Geography
      • Caregivers
      • Part-timers (26M)
      • Disabled (16M)
      • Rural
      • Retirees
    Over 70% of employees say they would like to work from home, at least part of the time. More than a third say they’d choose the option to telecommute over a pay raise.
  • 18. Employer Benefit: Turnover Savings
    • Attrition costs 75% of a non-exempt salary and 150-200% of exempt salary.
    • 85% of employers say telework increases employee retention.
    • 72% of employees say they’d choose a flexwork job over traditional.
    • Gen Y workers are attracted to flexible work arrangements.
    • 70% of Boomers plan to work for pay after retirement
    • Two-thirds of employees would take another job to ease the commute.
    • 25% reduction in attrition
    • cost of turnover at 138% of wages
    Annual Saving Due to Reduced Turnover for Businesses Telecommuters 50 100 500 U.S. Turnover $38,046 $76,092 $380,459 $31.1 B
  • 19. Employer: Total Savings (Half-Time) Total Annual Employer Savings for Businesses Telecommuters 50 100 500 U.S. Productivity $288,176 $576,351 $2,881,756 $235.4 B RE/Electricity $151,846 $303,692 $1,518,462 $124.0 B Absenteeism $56,700 $113,400 $567,000 $46.3 B Turnover $38,046 $76,092 $380,459 $31.1 B Total Savings $534,768 $1,069,535 $5,347,676 $436.8 B
  • 20. Employer Benefit: Other
    • Potential financial incentives
    • Improved Continuity of Operations
    • Community citizenship
    • Alternative to off-shoring
    • Avoid environmental sanctions
    • Avoid city access fees
    • Reduce overtime
    • Reduce overstaffing
    • 24/7 global coverage
    • Fewer meetings
    • Results-based management
    • Reduce potential for discrimination
    • Increase employee empowerment
    • Improve work-life balance
    • Avoid of local labor burnout
    • Equalizes personalities
    • Local licensing compliance
    • Local knowledge hires
  • 21. Employer: Concerns
    • Control
    • Productivity
    • Technology /Costs
    • Security
    • Culture
  • 22. Employer Concerns: Security
    • Training
    • Virtual Private Network (VPN) / Biometrics
    • Virus Protection / Monitoring
    • Firewalls
    • Personal Use
  • 23. Employer Concerns: Culture
    • Training
    • Esprit de corps
    • Advancement
    • Communications
    • Can vs. Can Not's
  • 24.
    • Workshifting Benefits:
    • The Bottom Line For Employees
  • 25. Workshifting: Employee Benefits
    • Commute – 63%
    • Flexibility – 49%
    • Productivity – 29%
    • Money – 28%
    TeleworkResearchNetwork.com
  • 26. Workshifting: Employee Benefits • 90% of home-based telecommuters say they are happier with the balance in their lives because of working from home. • During the 2008 run up in fuel prices, two-thirds of employee said they’d take another job to ease the commute. Total Per Person Employee Savings / Year Scenario Low Avg. High Days 5.7 10.1 15.4 Dollars $1,966 $4,203 $6,808
  • 27. Workshifting: Employee Concerns
    • Self-discipline
    • Working Space
    • Loneliness
    • Co-Worker Jealousy
    • Advancement
    • Overworking
  • 28.
    • Workshifting Benefits:
    • The Bottom Line For Community
  • 29. Workshifting: Community Issues
    • Pollution
    • Fossil Fuel Dependence
    • Traffic Congestion
    • Highway Maintenance
    • Other
  • 30. Community Savings Annual Greenhouse Gas Reduction (tonnes unless noted) Telecommuters 50 100 500 U.S. Greenhouse Gases 65 129 647 *52.8 MMT Equiv. Cars 12 23 117 9,596,859 *including 50MMT of CO 2 or 27% of U.S. 2020 Goal Annual Oil Savings Telecommuters 50 100 500 U.S. Barrels of Oil 353 707 3,534 288.7 M* * 36.6% of Persian Gulf imports $ Saving for Oil $28,275 $56,550 $282,749 $23.1 B
  • 31. Community Benefits Annual Reduction in Highway Miles / Accident Costs Telecommuters 50 100 500 U.S. Accident Savings ($) $14,211 $28,421 $142,107 $11.6 B Vehicle Miles 140,625 281,250 1,406,250 114.9 B Maintenance $2,391 $4,781 $23,906 $2.0 B
  • 32. Workshifting Community Benefits The Environmental Ripple Effect
    • Less Travel
      • Teleconferencing
      • Remote Training / Webinars
    • Less Building Construction
    • Less Office Equipment / Toxic Waste
    • Less Paper
  • 33. Telecommuting: Bottom Line Benefits Total Annual Benefits—All Constituents Telecommuters 50 100 500 U.S. Total Employer $534,768 $1,069,535 $5,347,676 $436.8 B Total Employee $210,167 $420,333 $2,101,666 $171.7 B Total Community $44,876 $89,752 $448,762 $36.7 B TOTAL $789,810 $1,579,621 $7,898,104 $645.2 B
  • 34. Telecommuting: Other Community Benefits
  • 35. Workshifting Resources at: TeleworkResearchNetwork.com Blog: Undress4Success.com
    • Telework Savings Calculator
    • Federal, State, Local Incentives Programs
    • Statistics, Case Studies, Pros & Cons
    • Consultant Referral
    • Sample Documents
    • Latest News
  • 36. Workshifting Resources From Citrix Online CITRIX Online
  • 37.
    • Workshifting Benefits:
    • Questions About The Bottom Line?
  • 38. Contact:
    • TeleworkResearchNetwork
      • Research, Speaking, Whitepapers, Writing
      • http://TeleworkResearchNetwork.com
      • [email_address]
      • 760-703-0377 (Left Coast Time)
    • Jessica Eastman, Citrix Online
      • GoToMeeting, GoToWebinar, GoToMyPC
      • Free Trial: http://www.gotomeeting.com/TryIt
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    Sponsored By: Download Citrix Online Sponsored: Workshifting: Bottom Line Impact http://bit.ly/062210 CITRIX Online