Telecommuting: The Bottom LineKate Lister, Telework Researcher and AuthorJim Ball, Managing Partner, Alpine Access Consulting
About Kate20+ Years WAH
Author
Undress For Success: The Naked Truth About Making Money at Home (Wiley, 2009). Forward by Jack Nilles.
Praised by WorldatWork, Telework Canada, Telcoa, and top worklife experts.
Telework Researcher
250+ Studies / Interviews
Telework Savings Calculator2010 Total Rewards Conference & Exhibition
About JimCo-founder Alpine Access
Original 100% home-based employee call center
2,800 employees in 35 states
Managing Director, Alpine Access Consulting2010 Total Rewards Conference & Exhibition
Telecommuting: The Bottom LineThe Benefits
Employers, Employees, Community
Quantitative
Qualitative
The Barriers
Cultural, Societal
Best Practices / Resources2010 Total Rewards Conference & Exhibition
Telework Savings Calculator• Used by legislators, community advocates, and Fortune 500 companies in U.S. and Canada to promote telework initiatives • Available for every City, County, Metro Area, Congressional District, State in U.S.   • SavingsCompany: Real Estate, Absenteeism, Turnover, ProductivityCommunity: Oil, greenhouse gases, traffic, highway maintenanceIndividual: Gas, auto, food, parking, tolls, clothing, daycare
Custom Savings CalculatorTotal # of employees# TeleworkersDays / week they will teleworkAdditionalpeople who could work at homeRoundtrip miles to workRoundtrip commute in minutesOther employee Savings$ per gallon of gas% teleworker offices that are eliminatedCost per kWh of electricityCost/per officeCost of losing an employeeCost of unscheduled absences% Reduction in absences% of employees who quit each year% improvement in retentionAssumed improvement in productivityAverage annual earnings of teleworkersOther company savings % Who could work at home% of people who want to telework% Daily travel reductionParking, Lunch, Work ClothesOther Individual Savings/YearDay Care Costs
Telework Savings Calculator - SourcesAmerican Community SurveyBureau of Transportation Statistics (BTS) Omnibus Household Survey2005 Reason Foundation — The Quiet Success: Telecommuting's Impact on Transportation and BeyondEPA MOBILE6.2 Colliers International 2008 Parking StudyBLS Labor ReviewBLS Consumer Spending ReportCenter for Energy and Climate Solutions / Global Environment and Technology FoundationNational Association of Child Care Resource & Referral AgenciesU.S. Department of Energy, Energy Information Administration, Household Electricity ReportsNational Highway Safety Administration "Traffic Safety Facts”Federal Highway Administration Traffic Safety DataCushman & Wakefield MarketBeatMatthews and Williams "Telework Adoption and Energy Use in Building and Transport Sectors in the United States and Japan”U.S. General Administrative Services Telework StudiesAmerican Management Associations / AVAYA "Unleashing the Hidden Productivity of your Small Business”CCH Unscheduled Absence SurveyTalentKeepers Employee Turnover TrendsWorldatWork Member SurveysCommuteSolutions.org 
Telecommuting: The Bottom LineEmployers
Telecommuting: The Bottom Line for EmployersProductivity
Facilities
Absenteeism
Attraction / Retention
Other2010 Total Rewards Conference & Exhibition
Employer ProductivityBusinesses lose $600 billion a year in workplace distractions.Fewer InterruptionsMore Effective Time ManagementEmpowermentFlexible HoursLong Hours
Employer: 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. - IBM study suggests telework employees up to 50% more productive.- Alpine Access, shows 30% increase in sales / 90% reduction in complaints- Over two-thirds of employers report increased productivity for telecommuters.
Employer ProductivityWorkers when you need them
Employers: FacilitiesMore Efficient
More Flexible
Scalable
Hoteling / Hot Desking
Other Costs: parking, furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, compliance costsEmployers: FacilitiesSun 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.- The U.S. Patent & Trademark Office avoided $11 million in new real estate expenses through telecommuting and office hoteling (70% of staff telework)- IBM’s 80,000 teleworkers save the company $700 million a year in real estate costs.
Employers: FacilitiesYou don’t pay for an employee’s car and maintenance
What if you didn’t have to pay for and support their computer and phone?Employers: AbsenteeismTelecommuting has proven to be the second most effective method of reducing absencesStressExposureOccupational / Environmental HazardsDrivingWork While SickMore Satisfied
Employers: Absenteeism- 78% of employees who call in sick, really aren’tUnscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion per year for U.S. companies.- Based on AMA data U.S. GSA telework cost/benefit model shows a 63% reduction in unscheduled absences per teleworker.- 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.- 64% of managers felt reduced absenteeism was a strong or very strong business reason to allow flexible work.
Employer Benefits: Attraction / RetentionAmong top non-financial benefitsExpands talent pool GeographyCaregiversPart-timers (26M)Disabled (16M)RuralRetireesAlmost 80% 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.

Telecommuting: Bottom Line Benefits

  • 1.
    Telecommuting: The BottomLineKate Lister, Telework Researcher and AuthorJim Ball, Managing Partner, Alpine Access Consulting
  • 2.
  • 3.
  • 4.
    Undress For Success:The Naked Truth About Making Money at Home (Wiley, 2009). Forward by Jack Nilles.
  • 5.
    Praised by WorldatWork,Telework Canada, Telcoa, and top worklife experts.
  • 6.
  • 7.
    250+ Studies /Interviews
  • 8.
    Telework Savings Calculator2010Total Rewards Conference & Exhibition
  • 9.
  • 10.
    Original 100% home-basedemployee call center
  • 11.
  • 12.
    Managing Director, AlpineAccess Consulting2010 Total Rewards Conference & Exhibition
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
    Best Practices /Resources2010 Total Rewards Conference & Exhibition
  • 20.
    Telework Savings Calculator•Used by legislators, community advocates, and Fortune 500 companies in U.S. and Canada to promote telework initiatives • Available for every City, County, Metro Area, Congressional District, State in U.S. • SavingsCompany: Real Estate, Absenteeism, Turnover, ProductivityCommunity: Oil, greenhouse gases, traffic, highway maintenanceIndividual: Gas, auto, food, parking, tolls, clothing, daycare
  • 21.
    Custom Savings CalculatorTotal# of employees# TeleworkersDays / week they will teleworkAdditionalpeople who could work at homeRoundtrip miles to workRoundtrip commute in minutesOther employee Savings$ per gallon of gas% teleworker offices that are eliminatedCost per kWh of electricityCost/per officeCost of losing an employeeCost of unscheduled absences% Reduction in absences% of employees who quit each year% improvement in retentionAssumed improvement in productivityAverage annual earnings of teleworkersOther company savings % Who could work at home% of people who want to telework% Daily travel reductionParking, Lunch, Work ClothesOther Individual Savings/YearDay Care Costs
  • 22.
    Telework Savings Calculator- SourcesAmerican Community SurveyBureau of Transportation Statistics (BTS) Omnibus Household Survey2005 Reason Foundation — The Quiet Success: Telecommuting's Impact on Transportation and BeyondEPA MOBILE6.2 Colliers International 2008 Parking StudyBLS Labor ReviewBLS Consumer Spending ReportCenter for Energy and Climate Solutions / Global Environment and Technology FoundationNational Association of Child Care Resource & Referral AgenciesU.S. Department of Energy, Energy Information Administration, Household Electricity ReportsNational Highway Safety Administration "Traffic Safety Facts”Federal Highway Administration Traffic Safety DataCushman & Wakefield MarketBeatMatthews and Williams "Telework Adoption and Energy Use in Building and Transport Sectors in the United States and Japan”U.S. General Administrative Services Telework StudiesAmerican Management Associations / AVAYA "Unleashing the Hidden Productivity of your Small Business”CCH Unscheduled Absence SurveyTalentKeepers Employee Turnover TrendsWorldatWork Member SurveysCommuteSolutions.org 
  • 23.
  • 24.
    Telecommuting: The BottomLine for EmployersProductivity
  • 25.
  • 26.
  • 27.
  • 28.
    Other2010 Total RewardsConference & Exhibition
  • 29.
    Employer ProductivityBusinesses lose$600 billion a year in workplace distractions.Fewer InterruptionsMore Effective Time ManagementEmpowermentFlexible HoursLong Hours
  • 30.
    Employer: Productivity- Employeesadmit to wasting two hours a day.- Best Buy’s average productivity increased 35%.75% agree that flexible work increases productivity.
  • 31.
    Dow Chemicalestimates a 32.5% increase in productivity. - IBM study suggests telework employees up to 50% more productive.- Alpine Access, shows 30% increase in sales / 90% reduction in complaints- Over two-thirds of employers report increased productivity for telecommuters.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
    Other Costs: parking,furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, compliance costsEmployers: FacilitiesSun 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.- The U.S. Patent & Trademark Office avoided $11 million in new real estate expenses through telecommuting and office hoteling (70% of staff telework)- IBM’s 80,000 teleworkers save the company $700 million a year in real estate costs.
  • 38.
    Employers: FacilitiesYou don’tpay for an employee’s car and maintenance
  • 39.
    What if youdidn’t have to pay for and support their computer and phone?Employers: AbsenteeismTelecommuting has proven to be the second most effective method of reducing absencesStressExposureOccupational / Environmental HazardsDrivingWork While SickMore Satisfied
  • 40.
    Employers: Absenteeism- 78%of employees who call in sick, really aren’tUnscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion per year for U.S. companies.- Based on AMA data U.S. GSA telework cost/benefit model shows a 63% reduction in unscheduled absences per teleworker.- 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.- 64% of managers felt reduced absenteeism was a strong or very strong business reason to allow flexible work.
  • 41.
    Employer Benefits: Attraction/ RetentionAmong top non-financial benefitsExpands talent pool GeographyCaregiversPart-timers (26M)Disabled (16M)RuralRetireesAlmost 80% 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.