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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.

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Published in: Business, Economy & Finance
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Telecommuting Benefits: The Bottom Line for Companies, Employees & the Community

  1. 1. Workshifting Benefits: The Bottom Line Kate Lister & Tom Harnish TeleworkResearchNetwork.com Sponsored By:
  2. 2. About <ul><ul><li>Undress For Success: The Naked Truth About Making Money at Home (Wiley 2009) </li></ul></ul><ul><ul><li>Finding Money: The Small Business Guide To Financing (Wiley 1995) (Revised 2010) </li></ul></ul>
  3. 3. Research <ul><li>250+ Studies </li></ul><ul><li>Researchers </li></ul><ul><li>Advocates </li></ul><ul><li>Naysayers </li></ul><ul><li>Employers </li></ul><ul><li>Employees </li></ul><ul><li>Venture Capitalists </li></ul>
  4. 4. Definition “ All telecommuters are teleworkers, but not vice versa.”—Jack Nilles
  5. 5. Workshifting Benefits: The Bottom Line <ul><li>Employers </li></ul><ul><li>Employees </li></ul><ul><li>Community </li></ul>2010 Total Rewards Conference & Exhibition TeleworkResearchNetwork.com
  6. 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. 7. <ul><li>Benefits Quantified </li></ul><ul><li>•  Company </li></ul><ul><ul><li>- Productivity </li></ul></ul><ul><ul><li>- Real Estate </li></ul></ul><ul><ul><li>- Electricity </li></ul></ul><ul><ul><li>- Absenteeism </li></ul></ul><ul><ul><li>- Turnover </li></ul></ul><ul><li>• Individual </li></ul><ul><ul><li>- Gas/auto </li></ul></ul><ul><ul><li>- Food </li></ul></ul><ul><ul><li>- Clothing </li></ul></ul><ul><ul><li>- Daycare </li></ul></ul><ul><li>• Community </li></ul><ul><ul><li>- Oil </li></ul></ul><ul><ul><li>- Greenhouse gases </li></ul></ul><ul><ul><li>- Traffic accidents and costs </li></ul></ul><ul><ul><li>- Highway maintenance </li></ul></ul>
  8. 8. T elework Savings Calculator - Sources
  9. 9. Custom Savings Calculator
  10. 10. <ul><li>Workshifting Benefits: </li></ul><ul><li>The Bottom Line For Employers </li></ul>
  11. 11. Employer Benefit: Productivity <ul><li>Fewer Interruptions </li></ul><ul><li>More Effective Time Management </li></ul><ul><li>Empowerment </li></ul><ul><li>Flexible Hours </li></ul><ul><li>More Hours </li></ul>Businesses lose $600 billion a year in workplace distractions.
  12. 12. Employers Benefit: Productivity <ul><li>Employees admit to wasting two hours a day. </li></ul><ul><li>Best Buy’s average productivity increased 35%. </li></ul><ul><li>75% agree that flexible work increases productivity. </li></ul><ul><li>Dow Chemical estimates a 32.5% increase in productivity. </li></ul><ul><li>Assumptions: </li></ul><ul><li>Avg. Salary = $32,000 </li></ul><ul><li>- Productivity Increase = 27% </li></ul>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. 13. Employers Benefit: Facilities <ul><li>More Efficient </li></ul><ul><li>More Flexible </li></ul><ul><li>Scalable </li></ul><ul><li>Hoteling / Hot Desking </li></ul><ul><li>Other Costs: parking, furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, compliance costs </li></ul>
  14. 14. Employers Benefit: Facilities <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><ul><li>Unisys reduced its real estate costs by 87% through telecommuting. </li></ul><ul><li>McKesson Corporation’s telework program saves >$1 million a year in RE costs. </li></ul>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. 15. Employers Benefit: Absenteeism <ul><li>Stress </li></ul><ul><li>Exposure to Illnesses </li></ul><ul><li>Occupational / Environmental Hazards </li></ul><ul><li>Driving accidents </li></ul><ul><li>Working While Sick </li></ul><ul><li>Job dissatification </li></ul>Telecommuting has proven to be the 2nd most effective method of reducing absences behind flexwork in general
  16. 16. Employers Benefit: Absenteeism <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><ul><li>AMA data and U.S. GSA telework model shows a 63% reduction in unscheduled absences per teleworker. </li></ul><ul><li>64% of managers felt reduced absenteeism was a strong reason to allow flexible work. </li></ul><ul><li>Assumptions: </li></ul><ul><li>Reduced absenteeism = 3.7 days/yr </li></ul><ul><li>- Annual cost per unscheduled absence = $310 </li></ul>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. 17. Employer Benefit: Attraction / Retention <ul><li>Among top non-financial benefits </li></ul><ul><li>Expands talent pool </li></ul><ul><ul><li>Geography </li></ul></ul><ul><ul><li>Caregivers </li></ul></ul><ul><ul><li>Part-timers (26M) </li></ul></ul><ul><ul><li>Disabled (16M) </li></ul></ul><ul><ul><li>Rural </li></ul></ul><ul><ul><li>Retirees </li></ul></ul>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. 18. Employer Benefit: Turnover Savings <ul><li>Attrition costs 75% of a non-exempt salary and 150-200% of exempt salary. </li></ul><ul><li>85% of employers say telework increases employee retention. </li></ul><ul><li>72% of employees say they’d choose a flexwork job over traditional. </li></ul><ul><li>Gen Y workers are attracted to flexible work arrangements. </li></ul><ul><li>70% of Boomers plan to work for pay after retirement </li></ul><ul><li>Two-thirds of employees would take another job to ease the commute. </li></ul><ul><li>25% reduction in attrition </li></ul><ul><li>cost of turnover at 138% of wages </li></ul>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. 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. 20. Employer Benefit: Other <ul><li>Potential financial incentives </li></ul><ul><li>Improved Continuity of Operations </li></ul><ul><li>Community citizenship </li></ul><ul><li>Alternative to off-shoring </li></ul><ul><li>Avoid environmental sanctions </li></ul><ul><li>Avoid city access fees </li></ul><ul><li>Reduce overtime </li></ul><ul><li>Reduce overstaffing </li></ul><ul><li>24/7 global coverage </li></ul><ul><li>Fewer meetings </li></ul><ul><li>Results-based management </li></ul><ul><li>Reduce potential for discrimination </li></ul><ul><li>Increase employee empowerment </li></ul><ul><li>Improve work-life balance </li></ul><ul><li>Avoid of local labor burnout </li></ul><ul><li>Equalizes personalities </li></ul><ul><li>Local licensing compliance </li></ul><ul><li>Local knowledge hires </li></ul>
  21. 21. Employer: Concerns <ul><li>Control </li></ul><ul><li>Productivity </li></ul><ul><li>Technology /Costs </li></ul><ul><li>Security </li></ul><ul><li>Culture </li></ul>
  22. 22. Employer Concerns: Security <ul><li>Training </li></ul><ul><li>Virtual Private Network (VPN) / Biometrics </li></ul><ul><li>Virus Protection / Monitoring </li></ul><ul><li>Firewalls </li></ul><ul><li>Personal Use </li></ul>
  23. 23. Employer Concerns: Culture <ul><li>Training </li></ul><ul><li>Esprit de corps </li></ul><ul><li>Advancement </li></ul><ul><li>Communications </li></ul><ul><li>Can vs. Can Not's </li></ul>
  24. 24. <ul><li>Workshifting Benefits: </li></ul><ul><li>The Bottom Line For Employees </li></ul>
  25. 25. Workshifting: Employee Benefits <ul><li>Commute – 63% </li></ul><ul><li>Flexibility – 49% </li></ul><ul><li>Productivity – 29% </li></ul><ul><li>Money – 28% </li></ul>TeleworkResearchNetwork.com
  26. 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. 27. Workshifting: Employee Concerns <ul><li>Self-discipline </li></ul><ul><li>Working Space </li></ul><ul><li>Loneliness </li></ul><ul><li>Co-Worker Jealousy </li></ul><ul><li>Advancement </li></ul><ul><li>Overworking </li></ul>
  28. 28. <ul><li>Workshifting Benefits: </li></ul><ul><li>The Bottom Line For Community </li></ul>
  29. 29. Workshifting: Community Issues <ul><li>Pollution </li></ul><ul><li>Fossil Fuel Dependence </li></ul><ul><li>Traffic Congestion </li></ul><ul><li>Highway Maintenance </li></ul><ul><li>Other </li></ul>
  30. 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 $23.1 B
  31. 31. Community Benefits Annual Reduction in Highway Miles / Accident Costs Telecommuters 50 100 500 U.S. Accident Savings ($) $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. 32. Workshifting Community Benefits The Environmental Ripple Effect <ul><li>Less Travel </li></ul><ul><ul><li>Teleconferencing </li></ul></ul><ul><ul><li>Remote Training / Webinars </li></ul></ul><ul><li>Less Building Construction </li></ul><ul><li>Less Office Equipment / Toxic Waste </li></ul><ul><li>Less Paper </li></ul>
  33. 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. 34. Telecommuting: Other Community Benefits
  35. 35. Workshifting Resources at: TeleworkResearchNetwork.com Blog: Undress4Success.com <ul><li>Telework Savings Calculator </li></ul><ul><li>Federal, State, Local Incentives Programs </li></ul><ul><li>Statistics, Case Studies, Pros & Cons </li></ul><ul><li>Consultant Referral </li></ul><ul><li>Sample Documents </li></ul><ul><li>Latest News </li></ul>
  36. 36. Workshifting Resources From Citrix Online CITRIX Online
  37. 37. <ul><li>Workshifting Benefits: </li></ul><ul><li>Questions About The Bottom Line? </li></ul>
  38. 38. Contact: <ul><li>TeleworkResearchNetwork </li></ul><ul><ul><li>Research, Speaking, Whitepapers, Writing </li></ul></ul><ul><ul><li>http://TeleworkResearchNetwork.com </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>760-703-0377 (Left Coast Time) </li></ul></ul><ul><li>Jessica Eastman, Citrix Online </li></ul><ul><ul><li>GoToMeeting, GoToWebinar, GoToMyPC </li></ul></ul><ul><ul><li>Free Trial: http://www.gotomeeting.com/TryIt </li></ul></ul><ul><ul><li>dlfjaldkjfdfd </li></ul></ul><ul><ul><li>kdjflkdjfkla </li></ul></ul>Sponsored By: Download Citrix Online Sponsored: Workshifting: Bottom Line Impact http://bit.ly/062210 CITRIX Online

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