Telework in the UK: The Bottom line benefits

BACKGROUND •  500 case studies, reports •  Top virtual employers, experts, advocates, naysayers •  Cited in Harvard Business Review, Wall Street Journal, etc.Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

SOURCES •  UK government sources: Department for Work and Pensions, Department for Transport, Ofﬁce of National Statistics, Department of Trade and Industry. •  Flexibility.co.uk, Wisework Ltd, UK Telework Association, Enterprise Nation •  AON, Kenexa Research, British Chambers of Commerce, Confederation of Business Industry, Chartered Institute of Personnel and Development, Equality and Human Rights Commission, Eurofound, European Union: European Social Fund, Forrester Research Inc, McKinsey Global Institute, Orange Future Enterprise Coalition, Royal Automobile Club Foundation, Trade Union CongressSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

GENERAL ASSUMPTIONS ‣  2 days per week ‣  50 per cent of workforce ‣  67 per cent willing ‣  75 per cent reduction in drivingSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

VARIABLES ✓ Total # of employees absences ✓ Current # of Teleworkers ✓ % Reduc9on in absences ✓ Days/week of telework ✓ % turnover ✓ Addi9onal teleworkers ✓ % Reten9on ✓ Roundtrip miles to work ✓ Produc9vity ✓ Roundtrip commute in ✓ Average annual earnings minutes ✓ Other company savings ✓ Other employee Savings ✓ % Who could work at home ✓ £ per litre of petrol ✓ % Who want to telework ✓ % teleworker oﬃces that ✓ % Daily travel reduc9on are eliminated ✓ Parking, Food, Work ✓ Cost/kWh of electricity Clothes ✓ Cost/oﬃce ✓ Other Individual Savings/ ✓ Cost of losing an employee Year ✓ Cost of unscheduled ✓ Day Care Costs Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

PRODUCTIVITY •  Fewer Interruptions •  More Effective Time Management •  Empowerment •  Flexible Hours •  More HoursSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Annual Increase in Productivity! Twice Weekly 50 100 500 UK Workshifting Productivity Increase £102,713 £205,426 £1,027,130 £15.3 bSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

REAL ESTATE•  Average office cost = £4,292/year (based on a 2007 government report) though London offices can run 2-3 times higher.•  Reduction with 2 day a week home working = 15 per cent (based on a 2007 government report)•  Electricity savings = 4,400 kWh per person, per year (based on two corroborating studies by Global Environment Technology Foundation and Sun Microsystems)•  Extra home office energy is shown as a cost in the Employee Savings section Telework Research Network

Annual Savings In Real Estate & Energy! Twice Weekly 50 100 500 UK Workshifting Real Estate& Energy Savings £27,810 £55,621 £278,106 £4.2 b Telework Research Network

ABSENTEEISM Experience less stress; •  •  Less exposer to sick co-workers; •  Exposed to fewer occupational and environmental hazards; •  Avoid driving—the most dangerous part of the day; •  Able to handle personal appointments without losing a full day s work •  More time for exercise.Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Annual Savings Due To Reduced Absenteeism! Twice Weekly 50 100 500 UK Workshifting Absenteeism Savings £21,763 £43,525 £217,626 £3.2 bSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

RETENTION •  Option to work at home top non- ﬁnancial beneﬁt desired by employees •  Expands the talent pool beyond geographic boundaries •  Provides access to disabled workers •  Offers alternatives that would have otherwise kept parents and senior caregivers out of the full-time workforce •  Appeals to aging workersSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Annual Savings Due To Reduced Turnover! Twice Weekly 50 100 500 UK Workshifting Turnover Savings £1,926 £3,852 £19,262 £287 m More realistic? £60,000 £120,000 £601,000 £9.0 bSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

OTHER •  Improved Continuity of Operations •  Improved community citizenship •  Offers alternative to off-shoring •  Avoids environmental sanctions •  Avoids city access fees •  Reduces overtime and overstafﬁng •  Offers easier 24/7 global coverage •  Reduces potential for discrimination •  Weeds out weak players •  Improves work-life balance •  Avoids of local labor burnout •  Equalizes personalities •  Allows local knowledge hiresSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

EMPLOYER CONCERNS •  Control •  Productivity •  Technology •  Security! •  Culture Telework Research Network

TIME •  54 minutes playing in trafﬁc or riding public transportation •  10 per cent spend more than 2 hoursSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Time Savings / Year (equivalent based on 8 hour workday)! Scenario Low Avg. High Time work days / year / person 8.5 11 21.5Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Workshifter Savings / Year by Mode of Travel! (including fuel where appropriate)! Car Moto Bike Coach Rail Walk Low £720 £627 £475 £437 £563 £220 Mid £1,049 £955 £803 £765 £1,280 £548 High £2,883 £1,307 £1,154 £1,117 £2,021 £900Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

AND MORE Daycare / Eldercare •  •  Serendipity purchases •  Ofﬁce gifts •  Vehicle insurance •  Other incidentals •  Live in less expensive areaSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

EMPLOYEE CONCERNS •  Discipline •  Space •  Loneliness •  Co-Worker Jealousy •  Advancement •  OverworkingSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

PETROLEUM IMPORTS •  Save over £750 million a year in imported oil •  Reduce oil imports by the equivalent of two- thirds of the UK s Sub- Saharan African importsSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

GREENHOUSE GASES •  Equivalent to taking 2.5 million cars off the road •  Reduce transportation sector greenhouse gas by more than 4 per centSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

TRAFFIC AND ACCIDENTS •  90 per cent said poor reliability of road networks had reduced productivity •  75 per cent complained that transport delays had a strong or moderate impact on the ability of their staff to get to work on time •  75 per cent feel their staff arrived at work stressedSponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Other Community Beneﬁts •  Revitalize cities by reducing trafﬁc—a disincentive to visitors •  Improve emergency responsiveness •  Provide portable work options for military families •  Raise the standard of living in rural and disadvantaged areas •  Reduce terrorism targets of opportunity •  Lower healthcare cost •  Provide highly educated talent access to jobs that maximize their potential •  Promote inbound talent migration without adding to local population •  Further reduce travel through widespread use of virtual technologies Sponsored by Citrix Online © Telework Research Network© 2011 Telework Research Network – All Rights Reserved

SUMMARY Total Impact! Twice Weekly 50 100 500 UK Workshifting Employer £154,212 £308,425 £1,542,124 £23.0 b Employee £52,448 £104,897 £524,483 £7.4 b Community £14,216 £28,431 £142,156 £2.1 b Overall £220,876! £441,753! £2,208,763! £32.5 b!Sponsored by Citrix Online Telework Research Network© 2011 Telework Research Network – All Rights Reserved

Kate Listerkate@teleworkresearchnetwork.comTom Harnishtom@teleworkresearchnetwork.com+01-760-703-0377TeleworkResearchNetwork.com

Telework in the UK: The Bottom line benefits

by Kate Lister

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