Telecommuting: Bottom Line Benefits

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May 2010 presentation at WorldatWork 2010 Conference, Dallas TX

Presented by Kate Lister, principal researcher at the TeleworkResearchNetwork.com and Jim Ball, co-founder of Alpine Access, one of the nation's largest home-based call center.

© 2011 Telework Research Network - All Rights Reserved

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Telecommuting: Bottom Line Benefits

  1. 1. Telecommuting: The Bottom Line<br />Kate Lister, Telework Researcher and Author<br />Jim Ball, Managing Partner, Alpine Access Consulting<br />
  2. 2. About Kate<br /><ul><li>20+ Years WAH
  3. 3. Author
  4. 4. Undress For Success: The Naked Truth About Making Money at Home (Wiley, 2009). Forward by Jack Nilles.
  5. 5. Praised by WorldatWork, Telework Canada, Telcoa, and top worklife experts.
  6. 6. Telework Researcher
  7. 7. 250+ Studies / Interviews
  8. 8. Telework Savings Calculator</li></ul>2010 Total Rewards Conference & Exhibition<br />
  9. 9. About Jim<br /><ul><li>Co-founder Alpine Access
  10. 10. Original 100% home-based employee call center
  11. 11. 2,800 employees in 35 states
  12. 12. Managing Director, Alpine Access Consulting</li></ul>2010 Total Rewards Conference & Exhibition<br />
  13. 13. Telecommuting: The Bottom Line<br /><ul><li>The Benefits
  14. 14. Employers, Employees, Community
  15. 15. Quantitative
  16. 16. Qualitative
  17. 17. The Barriers
  18. 18. Cultural, Societal
  19. 19. Best Practices / Resources</li></ul>2010 Total Rewards Conference & Exhibition<br />
  20. 20. Telework Savings Calculator<br />• Used by legislators, community advocates, and Fortune 500 companies in U.S. and Canada to promote telework initiatives <br />• Available for every City, County, Metro Area, Congressional District, State in U.S. <br />• Savings<br />Company: Real Estate, Absenteeism, Turnover, Productivity<br />Community: Oil, greenhouse gases, traffic, highway maintenance<br />Individual: Gas, auto, food, parking, tolls, clothing, daycare<br />
  21. 21. Custom Savings Calculator<br />Total # of employees<br /># Teleworkers<br />Days / week they will telework<br />Additionalpeople who could work at home<br />Roundtrip miles to work<br />Roundtrip commute in minutes<br />Other employee Savings<br />$ per gallon of gas<br />% teleworker offices that are eliminated<br />Cost per kWh of electricity<br />Cost/per office<br />Cost of losing an employee<br />Cost of unscheduled absences<br />% Reduction in absences<br />% of employees who quit each year<br />% improvement in retention<br />Assumed improvement in productivity<br />Average annual earnings of teleworkers<br />Other company savings <br />% Who could work at home<br />% of people who want to telework<br />% Daily travel reduction<br />Parking, Lunch, Work Clothes<br />Other Individual Savings/Year<br />Day Care Costs<br />
  22. 22. Telework Savings Calculator - Sources<br />American Community Survey<br />Bureau of Transportation Statistics (BTS) Omnibus Household Survey<br />2005 Reason Foundation — The Quiet Success: Telecommuting's Impact on Transportation and Beyond<br />EPA MOBILE6.2 <br />Colliers International 2008 Parking Study<br />BLS Labor Review<br />BLS Consumer Spending Report<br />Center for Energy and Climate Solutions / Global Environment and Technology Foundation<br />National Association of Child Care Resource & Referral Agencies<br />U.S. Department of Energy, Energy Information Administration, Household Electricity Reports<br />National Highway Safety Administration "Traffic Safety Facts”<br />Federal Highway Administration Traffic Safety Data<br />Cushman & Wakefield MarketBeat<br />Matthews and Williams "Telework Adoption and Energy Use in Building and Transport Sectors in the United States and Japan”<br />U.S. General Administrative Services Telework Studies<br />American Management Associations / AVAYA "Unleashing the Hidden Productivity of your Small Business”<br />CCH Unscheduled Absence Survey<br />TalentKeepers Employee Turnover Trends<br />WorldatWork Member Surveys<br />CommuteSolutions.org <br />
  23. 23. Telecommuting: <br />The Bottom Line<br />Employers<br />
  24. 24. Telecommuting: The Bottom Line for Employers<br /><ul><li>Productivity
  25. 25. Facilities
  26. 26. Absenteeism
  27. 27. Attraction / Retention
  28. 28. Other</li></ul>2010 Total Rewards Conference & Exhibition<br />
  29. 29. Employer Productivity<br />Businesses lose $600 billion a year in workplace distractions.<br />Fewer Interruptions<br />More Effective Time Management<br />Empowerment<br />Flexible Hours<br />Long Hours<br />
  30. 30. Employer: Productivity<br />- Employees admit to wasting two hours a day.<br />- Best Buy’s average productivity increased 35%.<br /><ul><li>75% agree that flexible work increases productivity.
  31. 31. Dow Chemical estimates a 32.5% increase in productivity. </li></ul>- IBM study suggests telework employees up to 50% more productive.<br />- Alpine Access, shows 30% increase in sales / 90% reduction in complaints<br />- Over two-thirds of employers report increased productivity for telecommuters.<br />
  32. 32. Employer Productivity<br />Workers when you need them<br />
  33. 33. Employers: Facilities<br /><ul><li>More Efficient
  34. 34. More Flexible
  35. 35. Scalable
  36. 36. Hoteling / Hot Desking
  37. 37. Other Costs: parking, furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, compliance costs</li></li></ul><li>Employers: Facilities<br /><ul><li>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</li></ul>- Unisys reduced its real estate costs by 87% through telecommuting.<br />- McKesson Corporation’s telework program saves >$1 million a year in RE costs.<br />- The U.S. Patent & Trademark Office avoided $11 million in new real estate expenses through telecommuting and office hoteling (70% of staff telework)<br />- IBM’s 80,000 teleworkers save the company $700 million a year in real estate costs.<br />
  38. 38. Employers: Facilities<br /><ul><li>You don’t pay for an employee’s car and maintenance
  39. 39. What if you didn’t have to pay for and support their computer and phone?</li></li></ul><li>Employers: Absenteeism<br />Telecommuting has proven to be the second most effective method of reducing absences<br />Stress<br />Exposure<br />Occupational / Environmental Hazards<br />Driving<br />Work While Sick<br />More Satisfied<br />
  40. 40. Employers: Absenteeism<br />- 78% of employees who call in sick, really aren’t<br /><ul><li>Unscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion per year for U.S. companies.</li></ul>- Based on AMA data U.S. GSA telework cost/benefit model shows a 63% reduction in unscheduled absences per teleworker.<br />- The spread of contagious disease is at the root of a federal policy that requires all eligible employees to telework to the maximum extent possible.<br />- 64% of managers felt reduced absenteeism was a strong or very strong business reason to allow flexible work.<br />
  41. 41. Employer Benefits: Attraction / Retention<br />Among top non-financial benefits<br />Expands talent pool <br />Geography<br />Caregivers<br />Part-timers (26M)<br />Disabled (16M)<br />Rural<br />Retirees<br />Almost 80% of employees say they would like to work from home, at least part of the time. <br />More than a third say they’d choose the option to telecommute over a <br />pay raise.<br />
  42. 42. Employer: Turnover Savings<br />- Attrition costs 75% of a non-exempt salary and 150-200% of exempt salary.<br /><ul><li> 85% of employers say telework increases employee retention.</li></ul>- 68% Shering-Plough teleworkers say it’ a factor in their decision to stay.<br />- 72% of employees say they’d choose a flexwork job over traditional.<br />- Gen Y workers are attracted to flexible work arrangements.<br />- 70% of Boomers plan to work for pay after retirement<br /><ul><li>5.4 million Americans with some college education or more aren't working.
  43. 43. Only 75% of women age 25–54 participate in the labor force.
  44. 44. Almost a quarter of women work part time (16.5 million), vs. 10% of men.</li></ul>- Two-thirds of employees would take another job to ease the commute.<br />
  45. 45. Employer: Total Savings (Half-Time)<br />
  46. 46. Employer: Other Benefits<br />Potential financial incentives<br />Improved COOP<br />Community citizenship<br />Alternative to off-shoring<br />Avoid of environmental <br />Avoid city access fees<br />Reduce overtime<br />Reduce overstaffing<br />24/7 global coverage<br />Fewer meetings<br />Higher quality<br />Results-based management<br />Reduce potential for discrimination<br />Increase employee empowerment<br />Improve work-life balance<br />Avoid of local labor burnout<br />Equalizes personalities<br />Local licensing compliance<br />Local knowledge hires<br />Tax / Cash Incentives<br />
  47. 47. Employer: Concerns<br /><ul><li>Control
  48. 48. Productivity
  49. 49. Technology
  50. 50. Management Overhead
  51. 51. Security
  52. 52. Culture
  53. 53. Legal</li></li></ul><li>Employer Concerns: Management Overhead<br /><ul><li>Different vs. Difficult
  54. 54. Communications
  55. 55. Synchronous vs. Asynchronous</li></ul>2010 Total Rewards Conference & Exhibition<br />
  56. 56. Employer Concerns: Security<br /><ul><li>Training
  57. 57. Virtual Private Network (VPN) / Biometrics
  58. 58. Virus Protection / Monitoring
  59. 59. Firewalls
  60. 60. Personal Use</li></ul>2010 Total Rewards Conference & Exhibition<br />
  61. 61. Employer Concerns: Culture<br /><ul><li>Training
  62. 62. Esprit de corps
  63. 63. Advancement
  64. 64. Communications
  65. 65. Can vs. Can Not's</li></ul>2010 Total Rewards Conference & Exhibition<br />
  66. 66. Employer Concerns: Legal / Administrative<br /><ul><li>OSHA
  67. 67. FLSA
  68. 68. Workers Compensation
  69. 69. Union Issues
  70. 70. State / Local Taxes
  71. 71. State Licensing
  72. 72. State Friendliness
  73. 73. Site Inspection</li></ul>2010 Total Rewards Conference & Exhibition<br />
  74. 74. Employees<br />Telecommuting: <br />The Bottom Line<br />
  75. 75. Telecommuting: Employee Benefits<br /><ul><li>Work-life Balance
  76. 76. Time
  77. 77. Gas
  78. 78. Money</li></ul>2010 Total Rewards Conference & Exhibition<br />
  79. 79. Telecommuting: Employee Benefits<br />• 90% of home-based telecommuters say they are happier with the balance in their lives because of working from home.<br />• During the 2008 run up in fuel prices, 92% of employees said they were concerned with the high cost of fuel. 73% felt their employers should take the lead in helping them reduce their commuting costs. <br />•During the same survey, two-thirds said they’d take another job to ease the commute.<br />
  80. 80. Telecommuting: Employee Concerns<br /><ul><li>Discipline
  81. 81. Space
  82. 82. Loneliness
  83. 83. Co-Worker Jealousy
  84. 84. Advancement
  85. 85. Overworking</li></ul>2010 Total Rewards Conference & Exhibition<br />
  86. 86. Community<br />Telecommuting: <br />The Bottom Line<br />
  87. 87. Telecommuting: Community Benefits<br /><ul><li>Pollution
  88. 88. Fossil Fuel Dependence
  89. 89. Traffic Congestion
  90. 90. Highway Maintenance
  91. 91. Other</li></ul>2010 Total Rewards Conference & Exhibition<br />
  92. 92. Community Savings<br />
  93. 93. Community Benefits<br />• From 1982 to 2005, only 6% of major cities were able to expand their roads in pace with traffic needs. Over 60% fell behind by more than 30%. <br />
  94. 94. Telecommuting: Community BenefitsThe Environmental Ripple Effect<br />Less Travel<br />Teleconferencing / Video Conferencing<br />Remote Training / Webinars <br />Less Construction<br />Less Office Equipment / Toxic Waste<br />Less Paper<br />
  95. 95. Telecommuting: Bottom Line Benefits<br />
  96. 96. Telecommuting: Other Community Benefits<br />Reduce human congestion<br />Revitalize cities<br />Improve emergency responsiveness<br />Increase productivity among non-telecommuters by reducing travel times<br />Increase employment<br />Provide portable work options for military families<br />Reduce the offshoring of jobs<br />Raise the standard of living in rural and disadvantaged areas<br />Reduce terrorism targets of opportunity<br />2010 Total Rewards Conference & Exhibition<br />
  97. 97. Resources<br />Telecommuting: <br />The Bottom Line<br />
  98. 98. Telecommuting: Available at:TeleworkResearchNetwork.com<br />Telework Savings Calculator<br />Federal, State, Local Incentives Programs<br />Statistics, Case Studies, Pros & Cons<br />Consultant Referral<br />Sample Documents<br />Latest News<br />2010 Total Rewards Conference & Exhibition<br />
  99. 99. Questions<br />Telecommuting: <br />The Bottom Line<br />
  100. 100. Contacts:<br />Kate Lister<br />http://TeleworkResearchNetwork.com<br />Kate@TeleworkResearchNetwork.com<br />760-703-0377 (Left Coast Time)<br />Custom Research, Speaking, Whitepapers, Writing<br />Jim Ball<br />jball@AlpineAccess.com<br />http://www.AlpineAccess.com<br />720-559-4732 (Forgotten Mountain Time)<br />Send Your Call Center Home<br />2010 Total Rewards Conference & Exhibition<br />

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