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Workshifting benefits the bottom line
TABLE OF CONTENTS
INTRODUCTION................................................................................... 3	
                   OTHER EMPLOYEE BENEFITS .............................................................. 14	
  

TELEWORK SAVINGS CALCULATOR........................................... 4	
                                            TOTAL EMPLOYEE SAVINGS ............................................................... 14	
  

   GENERAL ASSUMPTIONS ....................................................................... 5	
                 COMMUNITY SAVINGS ................................................................... 15	
  

EMPLOYER BENEFITS....................................................................... 6	
                          OIL SAVINGS ....................................................................................... 15	
  

   PRODUCTIVITY ...................................................................................... 6	
            GREENHOUSE GAS (GHG) SAVINGS ................................................... 16	
  

   REAL ESTATE, ELECTRICITY, OFFICE ................................................... 7	
                           TRAFFIC ACCIDENTS & RELATED COSTS............................................ 16	
  

   EXPENSES .............................................................................................. 7	
        HIGHWAY MAINTENANCE ................................................................... 17	
  

   ABSENTEEISM ........................................................................................ 8	
           OTHER COMMUNITY BENEFITS ........................................................... 18	
  

   ATTRACTION AND RETENTION .............................................................. 9	
                        TOTAL COMMUNITY BENEFITS ........................................................... 18	
  

   OTHER BENEFITS ................................................................................. 11	
              TOTAL OVERALL BENEFITS ................................................................ 19	
  

   TOTAL EMPLOYER BENEFITS .............................................................. 11	
                     SUMMARY ........................................................................................... 19	
  

EMPLOYEE BENEFITS ..................................................................... 12	
                       TELEWORK RESEARCH NETWORK ........................................... 20	
  

   GASOLINE EXPENSES .......................................................................... 12	
               CITRIX ONLINE ................................................................................. 20	
  

   OTHER WORK EXPENSES .................................................................... 13	
                   FOOTNOTES ......................................................................................... 21	
  

   TIME SAVINGS ..................................................................................... 13	
  




                                                                                                                    TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page                                    2 of 23
Workshifting Benefits: The Bottom Line



INTRODUCTION                                                           Federal employees have been required to telework to the maximum
                                                                       extent possible since 2000iv (though only 5.2% do sov). However,
                                                                       the current administration’s proposed budget for 2011 calls for a
The purpose of this paper is to quantify the benefits of workshift-    50% increase in telework.vi Both the House and Senate have
ing — specifically working from home — has for employers, em-          passed bills aimed at enforcing federal telework mandates.vii More
ployees, and the community. Citrix Online coined the term ‘work-       than two dozen federal, state, and local laws aimed at encouraging
shifting’ to describe the growing trend to working from anywhere       this practice have been proposed, and in many cases enacted, over
other than a traditional office through the use of web-based tech-     the last two years. In 2009, twelve members of Congress urged the
nology. The older and more traditional terms for this are telework-    House Transportation Committee and House Committee on Energy
ing or even telecommuting. Both of these terms are cited in this       and Commerce to include telework incentives in the nation’s en-
report to preserve its authenticity, since some of the data specifi-   ergy and transportation laws. In March of 2010, the White House
cally cited those terms.                                               Conference on Workplace Flexibility put its stamp on the impor-
                                                                       tance of these strategies.
Three decades have passed since the concept of using technology
to work outside of a traditional office was conceived. A broad         While worries over weather calamities, diseases, terrorism, fuel
body of evidence now corroborates the many economic, environ-          prices, and road closures frequently renew interest in workshifting,
mental, and societal benefits that researchers predicted. Occasional   less transient issues will drive widespread adoption in the years
workshifting (one day a month) has grown significantly in recent       ahead. Pollution sanctions, labor shortages, changing workforce
                           years—increasing 74% from 2005 to           dynamics, work-life balance issues, productivity, cost control, and
                           2008i, though few companies have            traffic congestion conspire to reinforce that work is what people
                           adopted it as a regular, multiple days      do, not a place they go. Though cultural obstacles remain, techno-
                           per week, business practice.                logical innovation has removed many of the practical barriers.

                           In fact, less than 2% of employees con-     TechCast, a virtual think tank based at George Washington Uni-
                           sider home their primary place of           versity, forecasts that 30% of the employees in industrialized na-
                           workii, although theoretical estimates      tions will teleworkviii 2–3 days a week by the year 2019. What’s
                           and empirical evidence suggest that ap-     more, they estimate the market for related products and services at
                           proximately 40% hold jobs that could        $400 billion a year.ix
                           be performed remotely, at least part of
                           the time.iii                                Missing from the body of knowledge available to date is a quanti-
                                                                       tative synthesis of the potential benefits that regular home-based


                                                                        TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   3 of 23
Workshifting Benefits: The Bottom Line


work can offer companies, employees, and communities. This pa-        While there are many other benefits, not all are easily reduced to
per aims to fill that gap.                                            numbers. These are listed at the end of each section along with
                                                                      some that were considered too subjective to include.
Half time home-based work is assumed throughout this report
(roughly the national average for those who do). It is organized
into three sections: employer benefits, employee benefits, and
                                                                      TELEWORK SAVINGS
community savings. The total value of benefits is provided for 50,
100, and 500 participants, and for the nation as a whole. The quan-
                                                                      CALCULATOR
tified benefits include:                                              The quantitative conclusions in this report were derived from the
                                                                      Telework Research Network’s (TRN) proprietary Telework Sav-
Employer Benefits:
                                                                      ings Calculator. The assumptions behind the calculator are based
 • Productivity                                                       on an analysis of over 250 case studies, research papers, books,
 • Real estate and related costs                                      and other documents on workshifting and related topics. Addi-
 • Turnover                                                           tional information was derived from dozens of interviews with the
 • Absenteeism                                                        nation’s top virtual employers, workshifting advocates and naysay-
                                                                      ers, researchers, and leaders of successful advocacy programs in
Employee Benefits                                                     both the public and private sector.
 • Gas
                                                                      The Telework Savings Calculator was developed in 2008 to quan-
 • Work related expenses                                              tify the potential benefit of home-based work for every city,
 • Time                                                               county, congressional district and state in the nation. Updated an-
                                                                      nually, it has been used by company and community leaders
Community Savings:                                                    throughout the U.S. and Canada to determine the economic, envi-
 • Oil                                                                ronmental, and societal potential of workshifting.
 • Greenhouse gases
                                                                      Conclusions derived from the calculator have been quoted in the
 • Accidents
                                                                      Wall Street Journal, Harvard Business Review, Washington Post,
 • Highway maintenance                                                and dozens of other publications.

                                                                      Recognizing that financial, labor, and travel issues vary greatly
                                                                      from industry to industry and region to region, TRN recently intro-


                                                                       TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   4 of 23
Workshifting Benefits: The Bottom Line


duced a customizable calculator on its Web site. It allows compa-        • Reason Foundation
nies and communities to quantify their own potential workshifting        • Colliers International
savings based on dozens of adjustable parameters such as real es-        • International Facilities Management Association
tate costs, turnover, absenteeism, participation rate, frequency, la-
bor costs, etc.                                                          • TalentKeepers
                                                                         • CommuteSolutions.org
Both the standard and custom calculator are available on the
Telework Research Network’s Web site (http://TeleworkResearch
Network.com).                                                           GENERAL ASSUMPTIONS
A branded version of the calculator is available to companies and       Below are the general assumptions behind the conclusions in this
communities that wish to use it as an advocacy tool or workshift-       paper. Additional assumptions, specific to each projected benefit,
ing tracking system.                                                    are summarized in the sections that follow.

The primary sources of data used in the calculator are:                   General Assumptions
                                                                          • Half-time home-based work (roughly the average for those
 • U.S. Census Bureau’s American Community Survey                         who currently dox) is assumed in all scenarios
 • U.S. Bureau of Transportation Statistics
                                                                          • U.S. population model:
 • U.S. Environmental Protection Agency
                                                                            - Assumes 40% of workers could work from home at least
 • U.S. Bureau of Labor Statistics
                                                                          part of the timexi (not including those who already do so regu-
 • U.S. Department of Energy                                              larly), and 79% of that population would choose to if given the
 • U.S. National Highway Safety Administration                            opportunityxii
 • Federal Highway Administration                                         • Company model:
 • U.S. General Services Administration
                                                                            - Assumes 50, 100, and 500 workshifters
 • American Management Association
 • Harris Interactive                                                     • Notations throughout: B = Billion, M = Million
 • Wolters Kluwer / CCH
 • Business Week Research
 • Cushman & Wakefield


                                                                         TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   5 of 23
Workshifting Benefits: The Bottom Line



EMPLOYER BENEFITS                                                        • More effective time management: Email and other asynchro-
                                                                           nous communications can be time-managed more effectively
                                                                           and are less apt to include non-work digressions.
Half-time home-based work among those with compatible jobs               • Feeling like a trusted employee: A sense of empowerment and
could save employers over $10,000 per employee per year—the                commitment is consistently shown to be one of the highest con-
result of increased productivity, reduced facility costs, lowered ab-      tributors to employee job satisfaction.xiv
senteeism, and reduced turnover. The cumulative benefit to U.S.          • Flexible hours: For those who are able to flex their hours as
companies would exceed $400 billion a year.                                well as their location, workshifting allows them to work when
                                                                           they are most productive.
PRODUCTIVITY                                                             • Longer hours: Many employees work during the time they
                                                                           would have otherwise spent commuting. In fact, overworking
  Employer—Productivity Assumptions:                                       is a significant problem.
  • 27% increase in productivity on workshifting days (see in-
  dustry research)                                                      INDUSTRY RESEARCH ON PRODUCTIVITY
  • Value of employee time = $32,136 per man-year (Bureau of            Employees admit to wasting two hours a day (not including lunch
  Labor Statistics average earningsxiii )                               and scheduled breaks).xv
Lack of management buy-in is the most commonly cited obstacle           Businesses lose $600 billion a year in workplace distractions.xvi
to the adoption of workshifting programs. It’s clear managers fear
that left unmonitored, employees will not work as hard as they oth-     Best Buy’s average productivity increased 35% through its flexible
erwise would.                                                           work program.xvii

In fact, study after study shows that people who work from home         A Work+Life Fit / BDO Seidman survey of CFOs showed 75%
are more productive than their office counterparts. Contributing        agree that flexible work increases productivity.xviii
factors include:
                                                                        British Telecom estimates productivity increased 20% through
 • Fewer interruptions: Home-based workers are not distracted by        telecommuting.xix
   the many time drains that take place in a traditional office—
   morning chatter, coffee breaks, long lunches, rumor mills,           Dow Chemical estimates a 32.5% increase in productivity among
   birthday parties, football pools, etc.                               its teleworkers.xx


                                                                         TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   6 of 23
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Surveys and pilots conducted by IBM suggest that telework em-        REAL ESTATE, ELECTRICITY, OFFICE
ployees can be up to 50% more productive.xxi
                                                                     EXPENSES
Alpine Access, one of the nation’s largest all-virtual employers,      Employer—Real Estate Assumptions:
attributes a 30% increase in sales and 90% reduction in customer
complaints to its home-based agents.xxii                               • Average office cost = $16,422/yearxxvii
                                                                       • Reduction with half-time workshifting = 18%xxviii
American Express teleworkers handled 26% more calls and pro-
duced 43% more business than their office-based counterparts.xxiii     • Electricity savings = 4,400 kWh per person, per yearxxix

Compaq Computer Corporation documented increased teleworker          Traditional offices are expensive, inefficient, inflexible, and diffi-
productivity ranging from 15 to 45%.xxiv                             cult to scale (particularly down). Workshifting programs can re-
                                                                     duce the capital drain of owning or leasing a building. Along with
Over two-thirds of employers report increased productivity among     the lease/purchase costs, a workshifting program can save on park-
their teleworkers.xxv                                                ing lot leases, furniture, supplies, maintenance, security, janitorial,
                                                                     insurance, taxes, common area, and other related costs. These pro-
Sun Microsystems found that teleworkers spend 60% of the com-        grams can also reduce ADA, EPA, and OSHA compliance costs.
muting time they save performing work for the company.xxvi
                                                                     Workshifting can help companies consolidate inefficient space and
                                                                     eliminate the need for a local presence in regionally regulated in-
 Annual Increase in Productivity for Businesses                      dustries such as healthcare, insurance, and finance.
   Half-time
  Home-based                                                         Through office hoteling and hot-desking programs, even part-time
    Workers           50         100        500             U.S.     workshifting can reduce office-related expenses.
   Productivity
     Increase        $288,176    $576,351   $2,881,756    $235.4 B   INDUSTRY RESEARCH ON REAL ESTATE SAVINGS
                                                                     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, with flexible work options for 17,000 em-




                                                                      TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   7 of 23
Workshifting Benefits: The Bottom Line


ployees (2,000 primarily working at home, 15,000 up to 2 days a          ABSENTEEISM
week).xxx

Unisys reduced its real estate costs by 87% through telecommut-            Employer—Absenteeism Assumptions:
ing.xxxi                                                                   • Average reduction in absenteeism = 3.7 days a yearxxxvi

McKesson Corporation’s telework program saves them $1 million              • Annual cost per unscheduled absence = $310xxxvii
a year in real estate costs.xxxii
                                                                         Unscheduled absences cost employers billions. They necessitate
The U.S. Patent & Trademark Office avoided $11 million in new            staffing redundancies, they inconvenience coworkers and custom-
real estate expenses through telework and office hoteling. Over          ers, and they reduce productivity. Telework has proven to be the
80% of eligible staff telework (4,000 employees, 70% of staff).xxxiii    second most effective method of reducing absences (flexible
                                                                         scheduling is first).xxxviii
IBM’s 80,000 teleworkers save the company $700 million a year in
real estate costs.xxxiv                                                  Home-based workers often continue to work when they're sick.
                                                                         They’re able to return to work more quickly following pregnancy
Mindwave Research, a 21-person marketing research company                or surgery. And they’re able to handle personal appointments (e.g.,
reduced office space by nearly 70%by enabling more than half its         cable installer, appliance delivery, teacher consult, etc.) without
employees to become full-time teleworkers. They estimate the com-        losing a full day of work.
pany saves more than $11,000 per month in reduced rent and en-
ergy consumption.xxxv                                                    Home-based workers are sick or absent less often because they:

                                                                          • Experience less stress—a trigger in 85% of chronic dis-
                                                                            eases;xxxix,xl
   Annual Saving in Real Estate & Electricity for Businesses
    Half-time                                                             • Are less exposed to sick co-workers;
   Home-based                                                             • Are exposed to fewer occupational and environmental hazards;
     Workers           50         100          500      U.S.              • Avoid driving—the most dangerous part of a worker’s day;xli
                                                                          • Have more time for exercise.
      Electricity
       Savings           $151,846    $303,692    $1,518,462   $124.0 B




                                                                          TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   8 of 23
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Perhaps the most important reason they’re absent less is that they       ATTRACTION AND RETENTION
are more satisfied with their job and therefore less likely to fabri-
cate an illness.xlii
                                                                           Employer—Attraction and Retention Assumptions:
INDUSTRY RESEARCH ON ABSENTEEISM                                           • 25% reduction in attritionxlix
                                                                           • Cost of turnover = 138% of wagesl
78% of employees who call in sick, really aren't. They do so be-
cause of family issues, personal needs, and stress.xliii                   • Average U.S. wage = $32,136li

Unscheduled absences cost employers $1,800/employee per year;            Almost 80% of employees say they would like to work from home,
that adds up to $300 billion per year for U.S. companies.xliv            at least part of the time.lii More than a third say they’d choose the
                                                                         option to work from home over a pay raise.liii
The U.S. GSA telework cost/benefit model shows a 63% reduction
in unscheduled absences per teleworker.xlv                               Prior to the 2009 recession, being able to hire and retain good peo-
                                                                         ple was one of management’s top non-financial concerns.liv As the
The spread of contagious disease is at the root of a federal policy      recovery continues, retention and hiring problems will be exacer-
that requires all eligible employees to telework to the maximum          bated. Nearly half of employees surveyed in August 2009 said they
extent possible.xlvi                                                     were either looking for a new job or planning to do so when the
                                                                         recession was over.lv Forty percent of the labor force is now over
The American Management Association (AMA) reduced absences               the age of 40 and Baby Boomers are already slipping into retire-
by 63% through telework.xlvii                                            ment. Businesses will have to fight for top talent in the decade
                                                                         ahead.
64% of managers felt reduced absenteeism was a strong or very
strong business reason to allow flexible work.xlviii                     The cost of replacing an employee extends far beyond the recruit-
                                                                         ing process; it includes separation costs, temporary replacement
 Annual Saving Due to Reduced Absenteeism for Businesses                 costs, training costs, and lost productivity. A lost employee can
  Half-time                                                              also lead to lost customers, coworkers, and corporate intelligence.
 Home-based                                                              Workshifting enhances attraction and retention because it:
  Workers           50        100         500        U.S.
   Absenteeism                                                            • Is among the top non-financial benefits desired by employees;
     Savings           $56,700      $113,400     $567,000      $46.3 B    • Expands the talent pool beyond geographic boundaries;



                                                                          TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   9 of 23
Workshifting Benefits: The Bottom Line


 • Provides access to disabled workers;                                  managers) but they are particularly attracted to flexible work ar-
 • Offers alternatives that would have otherwise kept parents and        rangements (ranked as 8 on a 10 scale for impact on overall job
   senior caregivers out of the full-time workforce;                     satisfaction).lxii
 • Appeals to retiring workers.
                                                                         70% of Baby Boomers plan to work for pay after retirement by
                                                                         seeking flexible work arrangements and part-time schedules that
INDUSTRY RESEARCH ON ATTRACTION AND RETENTION                            allow them to pursue other interests.lxiii
Attrition costs a total of 75% of a non-exempt person’s salary and       71% of retired workers who later decided to go back to work
150 to 200% of an exempt person’s salary.lvi                             originally retired because of a desire for more flexibility than their
                                                                         job offered.lxiv
85% of employers say telework has a moderate to high impact on
employee retention.lvii                                                  5.4 million Americans with some college education or more aren't
                                                                         working.lxv
Turnover among VIPDesk’s home-based customer agents is less
than 10%; compared to 100–150% typical in a traditionally staffed        More than 12%of the working age population is disabled (16 mil-
call center.lviii                                                        lion). A full three quarters of unemployed workers with disabilities
                                                                         cite discrimination in the workplace and lack of transportation as
35% of employees who were not currently teleworking (but felt            major factors that prevent them from working.lxvi
they could) said they would be willing to give up some pay in ex-
change for the option to do so 2 days a week.lix                         52 million Americans aren't working and 26 million work part
                                                                         time.lxvii
68% of Shering-Plough Corporation’s telework program partici-
pants say that being able to telework is a factor in their decision to   Only 75%of women, still the traditional primary caregivers, age
stay with the company.lx                                                 25–54 participate in the labor force (compared to 90%of men).
                                                                         Almost a quarter of women work part time (16.5 million), com-
72% of employees say flexible work arrangements would cause
                                                                         pared to 10% of men.lxviii
them to choose one job over another; 37% specifically cite tele-
working.lxi                                                              Two-thirds of employees would take another job to ease the com-
                                                                         mute.lxix
Gen Y workers are more difficult to recruit (as reported by 56% of
hiring managers) and to retain (as reported by 64% of hiring



                                                                         TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   10 of 23
Workshifting Benefits: The Bottom Line


Nortel estimates that they save $100,000 per employee they don't           • Avoidance of environmental sanctions / city access fees;
have to relocate.lxx                                                       • Virtual communications can equalize personalities;
                                                                           • Emphasis on performance-based management;
   Annual Saving Due to Reduced Turnover for Businesses
                                                                           • Reduced potential for discrimination;
  Half-time
 Home-based                                                                • Increased employee empowerment;
  Workers            50         100        500         U.S.                • Improved work-life balance;
    Turnover                                                               • Reduced overtime among shift workers;
     Savings          $38,046      $76,092     $380,459        $31.1 B
                                                                           • Reduced need for overstaffing to accommodate peak loads;
                                                                           • More effective and less expensive 24/7 global coverage;
OTHER BENEFITS                                                             • Avoidance of local labor burnout;
                                                                           • Ability to hire people without brick and mortar presence.
Other benefits, not quantified in the company model include:

 • Potential financial incentives: A number of state and local pro-      TOTAL EMPLOYER BENEFITS
   grams provide financial and non-financial incentives for work-
   shifting. Notable programs include:
                                                                                   Total Annual Employer Savings for Businesses
   - TeleworkVA (Virginia; $3,500 per new telecommuter and                Half-time
   free assistance),                                                     Home-based
   - 36CommutingSolutions (Denver; free assistance),                      Workers           50           100           500             U.S.
   - The Clean Air Campaign (Georgia; tax credits and free assis-        Productivity
                                                                         Incr.            $288,176      $576,351      $2,881,756       $235.4 B
   tance), and                                                           RE/Electricity
   - Telecommute Connecticut (free assistance).                          Savings          $151,846      $303,692      $1,518,462       $124.0 B
   Links to these and other state and local programs are available       Absenteeism
                                                                         Savings          $56,700       $113,400      $567,000          $46.3 B
   at http://TeleworkResearchNetwork.com
                                                                         Turnover
 • Improved continuity of operations;                                    Savings          $38,046        $76,092      $380,459          $31.1 B
 • Higher community citizenship scores for being environmen-
                                                                          Total Savings     $534,768   $1,069,535      $5,347,676       $436.8 B
   tally and labor friendly;



                                                                         TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   11 of 23
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                                                                     $5,800/year with half-time home-based working and over $11,000
                                                                     a year with full-time participation.
EMPLOYEE BENEFITS
                                                                     INDUSTRY RESEARCH ON POTENTIAL GAS SAVINGS
Half-time home-based work could save employees between $2,000        During the 2008 run up in fuel prices, 92% of employees said they
and $6,800 per year—the result of reduced driving and fewer          were concerned with the high cost of fuel. 80% of them specifically
work-related expenses. That adds up to over $170 billion a year      cite the cost of commuting to work. 73% feel their employers
that could go toward savings or be spent elsewhere in the econ-      should take the lead in helping them reduce their commuting costs.
omy. Time saved per employee would total almost 2 workweeks a        During the same survey, two-thirds said they’d take another job to
year.                                                                ease the commute.lxxviii

GASOLINE EXPENSES                                                             Annual Saving Due to Reduced Gas Usage
                                                                       Half-time
  Commuter—Gas Savings Assumptions:                                   Home-based
                                                                       Workers      50         100        500        U.S.
  • Commuting miles/day = 30lxxi
                                                                       Gas Saved ($)     $18,080       $36,161      $180,804       $14.8 B
  • % Reduction in driving = 75%lxxii                                                  Average of $362 per person per year
  • Gas savings = $2.61/gallonlxxiii

At the peak of the 2008 fuel price spike, employees on tight budg-
ets were desperate for relief.lxxiv

Research suggests that while not all travel is eliminated on tele-
commuting days (because errands that used to be performed during
the commute now require separate trips), the majority is.lxxv

While the average trip to and from work is 30 miles, a third of
commuters have longer drives.lxxvi Those travelling over 60 miles
round trip (11% of commuterslxxvii ), would save an average of



                                                                     TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   12 of 23
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OTHER WORK EXPENSES                                                    office tax deductions, and car insurance rate reductions. For those
                                                                       with full-time work from home arrangements, a move to a less ex-
                                                                       pensive community offers a substantial cost-saving option.
  Consumer—Other Work Expense Assumptions:
  • Parking: Low = $0, Mid = $12.24, High = $27.02/daylxxix
  • Food (net of food at home): Low = $2.73, Mid = $7.37, High
  = $11.72/daylxxx                                                              Other Work Related Savings Per Person/Yr
                                                                               Low               Mid                  High
  • Clothing: Low = $1.40, Mid = $2.41, High = $4.12/daylxxxi
                                                                              $1,966                 $4,203                  $6,808
  • Incidentals: Certainly, they’re there—tolls, gifts, socializing,
  lunch-time shopping—but lacking facts, we’ve assumed zero.
                                                                       TIME SAVINGS
  • Non-gas portion of IRS mileage allowance = .45/milelxxxii
  • Cost of extra home office electricity = $176.40/yearlxxxiii          Consumer—Time Savings Assumptions:
                                                                         • Average commute = 52 minutes round trip; Low = 29 min-
                                                                         utes; High = 79 minutes lxxxiv
          Annual Saving in Other Work Expenses
   Half-time                                                             • Equivalent days calculation based on 8-hour days.
  Home-based
   Workers          50        100       500                  U.S.      Half-time home-based work can add up to an additional 2–3 work-
Other Work Exp.      $192,086    $384,173    $1,920,863    $156.9 B
                                                                       weeks of free time a year—time typically spent with family and
                                                                       friends, on hobbies, exercising, sleeping, or, as stated earlier,
                                                                       working. For employers, that means better work-life balance, hap-
The cost of working in an office doesn’t stop at the gas pumps.        pier people, and greater loyalty.
While socio-economic, geographic, and occupational differences
create a wide range of potential employee costs, the savings are       INDUSTRY RESEARCH ON COMMUTER TIME SAVINGS
significant for all who workshift from home.
                                                                       79% of employees say they’d like to work from home.lxxxv
Other common employee savings, not included in the model in-
clude: Decreased daycare/eldercare expense—particularly for            90% of home-based workers say they are happier with the balance
those who are able to adjust their hours around those needs, home      in their lives because of working from home.lxxxvi


                                                                       TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   13 of 23
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A study of over 3,000 employees showed that those with flexible          economy.xcii
schedules were less likely to have health problems that affect their
job performance.lxxxvii                                                  Traffic jams idle away 2.9 billion gallons of gas, and release more
                                                                         than 58 million extra pounds of CO2 every year.xciii
The top reasons employees want to work from home (federal em-
ployees/private sector) are: No commute (63–71%), greater flexi-         OTHER EMPLOYEE BENEFITS
bility (49–66%), greater productivity (29–40%), and saving money
(28–31%).lxxxviii                                                        Other benefits, not quantified in the employee model include:
                                                                         •      Greater flexibilityxciv
41% of workers who have the option to telework are “very satis-          •      Fewer sicknessesxcv
fied” with their jobs, compared to only 27% of those who are of-         •      Eldercare/childcare savings; home office tax breaks
fice-bound.lxxxix

 If traffic continues to grow at the current pace, over the next cou-
ple of decades, drivers in many of the nation’s cities will be sitting
in daily traffic jams worse than those that plague Los Angeles 8
hours a day. Commutes will take almost twice as long.xc                                    Total Annual Employee Savings
                                                                            Half-time
In cities such as Chicago, Houston, and Seattle, during peak com-          Home-based
mute times travelers have to allow twice as long as they normally           Workers              50         100          500            U.S.
would if they want to be sure to arrive on time.xci For busy road        Gas                    $18,080    $36,161      $180,804        $14.8 B
warriors, this essentially cuts their productivity in half.              Other Work
                                                                         Expenses              $192,086   $384,173     $1,920,863      $156.9 B
                                                                               Total Savings   $210,167   $420,333     $2,101,666      $171.7 B
Nationwide, 4.2 billion hours are spent driving in traffic every         TOTAL EMPLOYEE SAVINGS
year. That robs $78 billion worth of productivity from the U.S.

         Total Per Person Employee Savings / Year
       Scenario           Low        Avg.         High
Time (days per person)             5.7          10.1           15.4
$ Saved                         $1,966         $4,203        $6,808



                                                                         TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   14 of 23
Workshifting Benefits: The Bottom Line




COMMUNITY SAVINGS
                                                                      OIL SAVINGS
At the national level, half-time home-based work could:

 • Save $23 billion a year in imported oil;                             Community—Oil Savings Assumptions:
 • Cut Persian Gulf imports by 37%;                                     • Gas savings: see Employee section
 • Reduce greenhouse gases by the equivalent of taking almost 10        • Import cost = $80.07/barrelxcvi
   million cars off the road;
                                                                        • 19.6 gallons of gas per barrel of crudexcvii
 • Achieve 27% of the nation’s 2020 goal for GHG reduction
   from light cars and trucks;                                          • Persian Gulf oil imports = 790 million barrelsxcviii
 • Prevent over 95,000 traffic injuries and deaths;
 • Save over $11 billion in accident costs;
 • Lower highway maintenance costs almost $2 billion a year.                                  Annual Oil Savings
                                                                        Half-time
Even small companies can make a big impact on improving com-           Home-based
munity life through workshifting as shown in the analysis that fol-     Workers             50           100              500         U.S.
lows.
                                                                      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




                                                                      TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page    15 of 23
Workshifting Benefits: The Bottom Line


GREENHOUSE GAS (GHG) SAVINGS                                           TRAFFIC ACCIDENTS & RELATED COSTS
  Greenhouse Gas Savings (GHG) Assumptions:                              Community—Traffic Accident Assumptions:
  • U.S. GHG reduction stated in million metric tons (MMT)               • Number of accidents = 1.4 fatalities per 100 million vehicle
  • One gallon of gas = 20.9 pounds of greenhouse gasesxcix              miles traveled (VMT), and 83 injuries per 100 million VMTciv

  • Equivalent cars based on 5.5 average tons of GHG per                 • Cost/accident = $3.2 million/fatality, $68,170/injurycv
  car/yearc
                                                                       INDUSTRY RESEARCH ON TRAFFIC ACCIDENT COSTS
  • Goal for greenhouse gas reduction by 2020 = 17% of 2005
  levels for CO2 ci                                                    Traffic accidents cost $60 billion a year and result in 3 million lost
                                                                       workdays.cvi
INDUSTRY RESEARCH ON GREENHOUSE GASES                                  More than a quarter of accidents occur during the commute to and
                                                                       from work, making it the most dangerous part of the day.cvii
The Obama administration pledged to cut the greenhouse gas CO2
by 17% by 2020 from 2005 levels.cii                                    70% of drivers admit to making obscene gestures, tailgating, and
                                                                       blowing their horns to express their irritation; over 40% retaliate
Home-based work has the additional potential to reduce green-
                                                                       against or get into confrontations with fellow drivers.cviii
house gas emissions by 28 million tons due to reduced office con-
struction, and 312 million due to energy saved by businesses.ciii

              Annual Greenhouse Gas Reduction                                   Annual Reduction in Traffic Accident Costs
        Half-time                                                             Half-time
       Home-based
                                                                             Home-based
        Workers             50     100      500               U.S.
                                                                              Workers            50       100        500               U.S.
                                                               *52.8
Greenhouse Gases             65 tons 129 tons 647 tons         MMT     Accident Savings ($)         $14,211   $28,421     $142,107    $11.6 B
Equiv. Cars                       12       23     117 9,596,859
                *including 50MMT of CO2 or 27% of U.S. 2020 Goal




                                                                       TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   16 of 23
Workshifting Benefits: The Bottom Line


  HIGHWAY MAINTENANCE
    Community—Highway Maintenance Assumptions:
    • Highway maintenance cost per VMT = $.017cix

  INDUSTRY RESEARCH ON HIGHWAY MAINTENANCE
  The cost per lane-mile of urban highway is almost $4 million.cx

  The cost per mile of information superhighway is $20,000. cxi

  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%.cxii

  In 2008, four big-city mayors told Congress they were over-
  whelmed by infrastructure needs and couldn’t maintain their water
  systems, roads, and rail networks without more federal help.cxiii

  By 2025, the U.S. will need an additional 104,000 lane-miles of
  capacity to handle the projected load. Funding those improve-
  ments will cost $525 billion tax dollars.cxiv

             Annual Highway Maintenance Savings
 Half-time Home-based
        Workers            50      100       500                    U.S.
Vehicle Miles                 140,625    281,250   1,406,250      114.9 B
Maintenance                    $2,391     $4,781     $23,906       $2.0 B




                                                                            TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   17 of 23
Workshifting Benefits: The Bottom Line


OTHER COMMUNITY BENEFITS                                               TOTAL COMMUNITY BENEFITS
Beyond the community benefits quantified in this report, wide-
spread home-based workshifting could:

 • Reduce human congestion;                                                              Total Annual Community Savings
 • Revitalize cities by reducing traffic—a disincentive to visitors;       Half-time
                                                                          Home-based
 • Improve emergency responsiveness;                                       Workers              50        100          500            U.S.
 • Reduce road rage;                                                    Barrels of Oil            353           707       3,534    *288,712,881
 • Improve air quality;                                                                                          * 36.6% of Persian Gulf imports
 • Increase productivity among non-workshifters by reducing             $ Saving for Oil      $28,275     $56,550     $282,749          $23.1 B
   travel times;                                                        Greenhouse Gases       65 tons    129 tons     647 tons      52.8 MMT
 • Reduce pollution from road-work and office construction;             Equiv. Cars                  12         23           117    **9,596,859
 • Preserve open spaces;                                                                 ** including 50MMT of CO2 or 27% of U.S. 2020 Goal
 • Further reduce travel through widespread use of virtual tech-        Accident Savings $    $14,211      $28,421    $142,107          $11.6 B
   nologies;                                                            Vehicle Miles         140,624      281,250    1,406,250         114.9 B
 • Increase employment;                                                 Maintenance            $2,391       $4,781     $23,906           $2.0 B
 • Provide portable work options for military families;                      Total Savings    $44,876      $89,752    $448,762          $36.7 B
 • Reduce the offshoring of jobs and homeshore some that have
   already been lost;
 • Raise the standard of living in rural and disadvantaged areas;
 • Reduce terrorism targets of opportunity.




                                                                       TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   18 of 23
Workshifting Benefits: The Bottom Line


 TOTAL OVERALL BENEFITS                                                     • Human resource professionals see it as a way to recruit and re-
                                                                              tain the best people.
           Total Annual Benefits—All Constituents                           • Employees desire it because it saves time and money, and im-
                                                                              proves the quality of their lives.
  Half-time
 Home-based                                                                 • Baby Boomers see workshifting as a flexible alternative to full
  Workers           50          100         500                U.S.           retirement.
Total Employer        $534,768    $1,069,535     $5,347,676    $436.8 B     • Millennial workers appreciate it as a way to work on their own
Total Employee
                                                                              terms.
                      $210,167      $420,333     $2,101,666    $171.7 B
Total Community        $44,876       $89,752      $448,762      $36.7 B
                                                                            • Disabled workers, rural residents, and military families find it
                                                                              an answer to their special needs.
         TOTAL        $789,810    $1,579,621     $7,898,104    $645.2 B
                                                                            • Urban planners see it as a strategy to fill the gap between
                                                                              transportation system demand and supply.
                                                                            • Governments see it as a way to reduce highway wear and tear
 SUMMARY                                                                      and alleviate the strain on the nation’s crumbling transportation
                                                                              infrastructure.
                                                                            • Organizations rely on it to ensure continuity of operations in
 Workshifting, and in particular, home-based work, offers a rela-             the event of a disaster or pandemic.
 tively simple, high return-on-investment solution to some of the
 nation’s most vexing problems:

   • Environmentalists applaud it because telecommuting can sig-
     nificantly reduce greenhouse gases and energy usage.
   • Financial managers endorse it for its cost savings and increased
     productivity potential.
   • Work-life experts encourage it as a way to address the needs of
     families, parents, and senior caregivers.
   • Workforce planners see workshifting as a way to mitigate the
     “brain drain” effect of retiring Boomers.




                                                                          TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   19 of 23
Workshifting Benefits: The Bottom Line



TELEWORK RESEARCH                                                      CITRIX ONLINE
NETWORK                                                                Citrix Online provides secure, easy-to-use online solutions that en-
                                                                       able people to work from anywhere with anyone. Whether using
Kate Lister and Tom Harnish established the Telework Research          GoToMyPC® to access and work on a remote PC, GoToAssist®
Network (TRN) to gather, study, and share information about tele-      to support customers or GoToMeeting® to hold online meetings,
commuting and home-based work. Frustrated by managers’ reluc-          GoToWebinar® for larger Web events and GoToTraining® for
                              tance to initiate workshifting strate-   interactive online training, our customers – more than 35,000 busi-
                              gies, they aimed their popular press     nesses and hundreds of thousands of individuals – are increasing
                              book, Undress For Success—The Na-        productivity, decreasing travel costs and improving sales, training
                              ked Truth About Making Money at          and service on a global basis. A division of Citrix Systems, Inc.
                              Home (John Wiley & Sons, 2009), at       (NASDAQ: CTXS), the company is based in Santa Barbara, Cali-
                              employees so they would have the         fornia. For more information, visit www.citrixonline.com or call
                              facts necessary to negotiate, find, or   (805) 690-6400.
                              create remote work jobs, freelance
                              careers, or home-based businesses. It    For additional resources and research on workshifting, please visit
                              has won the praise of work-life and      Citrix Online’s blog, www.workshifting.com.
telecommuting advocates including the Telework Coalition, Tele-
work Canada, WorldatWork, and many others. Jack Nilles, the fa-        For a free evaluation of GoToMeeting Corporate or GoToWebinar,
ther of telework, wrote the foreword for the book.                     please visit http://www.gotomeeting.com.

TRN’s       Web       sites    (http://Undress4Success.com      and    For a free evaluation of GoToMyPC, please visit
http://TeleworkResearchNetwork.com) offer a wide range of free         https://www.gotomypc.com/.
resources for researchers, companies, and individuals interested in
telework. Their Telework Savings Calculator is available to com-
panies and communities that want to encourage and track telework
participation. The principals of TRN are available for research pro-
jects, consulting, and writing/speaking projects. They can be
reached at trn@teleworkresearchnetwork.com.



                                                                       TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   20 of 23
Workshifting Benefits: The Bottom Line




FOOTNOTES
                                                                                                xxvii
i
                                                                                                       International Facility Management Association 2009 (average rentable office space =
   WorldatWork.org: 2009 Telework Trendlines                                                    377/sf per person); Cushman & Wakefield MarketBeat 2008 average $43.56/sf.
ii
    2008 American Community Survey (excluding self-employed persons)                            xxviii
                                                                                                        U.S. GSA telework program suggests half of offices can be eliminated with full time
iii
    Matthews & Williams 2005                                                                    telework. Since half-time telecommuting would not eliminate all the associated offices, a
iv
    Public Law (PL) 106-346 section 359, October 2000.                                          figure of 18% reduction was used.
v
    2008 Status of Telework in the Federal Government—Report to Congress                        xxix
                                                                                                       Joseph Romm, The Internet and the New Energy Economy, Center for Energy and
vi
    Washington Post, Feb. 11, 2010, Snowstorm’s possible plus: Advancing cause of               Climate Solutions, Global Environment and Technology Foundation, 2002; Cost per kWh
telework.                                                                                       per U.S. Energy Administration. Note: extra energy used at home office is shown as a
vii
     H.R. 1722 Telework Improvement Act of 2009, S. 707 Telework Enhancement Act of             reduction to employee savings.
2009                                                                                            xxx
                                                                                                      Ann Bamesberger, Flex Your Force: Building the Virtual Office, Sun Executive
viii
      Telework is the term used to describe any substitution of technology for work-related     Boardroom
travel (e.g. teleconferencing, video conferencing, telecommuting). It is a broader term         (August ’07) and Sun Powerpoint Presentation: Talent Management: Attracting and
than telecommuting though they are commonly used interchangeably.                               Retaining the Next Generation Workforce
ix
    Techcast.org                                                                                xxxi
                                                                                                       Gary J. Grimes, et al., Transportation Improvements Through Telework, Birmingham
x
    Bureau of Labor Statistics – Work at Home in 2004                                           Alabama Center for Telecommunications Education and Research, July 2004)
xi
    Matthews & Williams 2005                                                                    xxxii
                                                                                                       Telephone interview with Linda Casey, McKesson Corporation, August 2007.
xii
     WorldatWork.org: 2009 Telework Trendlines; reinforced by adoption rate among Sun           xxxiii
                                                                                                        2008 U.S. Patent and Trademark Office Annual Report
Microsystems program participants.                                                              xxxiv
                                                                                                        Innovisions Canada
xiii
      12/2008 Bureau of Labor Statistics - average earnings for service industries (excluding   xxxv
                                                                                                       Avaya study as reported by MSNBC.
transportation)                                                                                 xxxvi
                                                                                                        U.S. GSA Recommendations to Assist Cost Recovery / ROI Strategies and Budget
xiv
     One More Time: How Do You Motivate Employees? Harvard Business Review,                     Planning, May 2006 (attributed to WorldatWork “Exploring Telework as a Business
January 2003                                                                                    Continuity Strategy” 2005); b) Non-telecommuting average of 2.4% (5.8 days) per year
xv
     The Cost of Not Paying Attention: How Interruptions Impact Knowledge Worker Pro-           CCH 17th Annual Unscheduled Absence Survey
ductivity (Jonathan Spira, Joshua Feintuch), Basex, Inc., 2005                                  xxxvii
                                                                                                         CCH 17th Annual Unscheduled Absence Survey
xvi
     Ibid                                                                                       xxxviii
                                                                                                         Ibid
xvii
      Cali Ressler and Jodi Thompson, Why Work Sucks (Portfolio 2008)                           xxxix
                                                                                                        Safety & Practitioner, May 2008
xviii
       Cali Yost Work+Life Fit Inc / BDO Seidman, LLP, 2008 CFO Perspectives on Work            xl
                                                                                                    CompTia Survey, October 2008
Life Flexibility                                                                                xli
                                                                                                     National Council on Compensation Insurance Inc, December 2006
xix
     BT Options 2000 as reported by EuropeanTelework.org                                        xlii
                                                                                                      CompTia Survey, October 2008
xx
     Jeff Zbar, Network World, December 4, 2002                                                 xliii
                                                                                                      Hewitt LCG, Nucleus Absence Overview; and 2005 CCH Unscheduled Absence
xxi
     Innovisions Canada                                                                         Survey
xxii                                                                                            xliv
     Email from J. Ball, co-founder of Alpine Access (February 2010)                                  Hewitt LCG, Nucleus Absence Overview
xxiii                                                                                           xlv
     Ibid                                                                                             U.S. GSA 2006 Cost Recovery ROI Strategies
xxiv                                                                                            xlvi
     Ibid                                                                                             Public Law (PL) 106-346 section 359
xxv                                                                                             xlvii
     CompTIA survey, October 2008                                                                      Chuck Wilsker, the Telework Coalition, Unleashing the Hidden Productivity of Your
xxvi                                                                                            Small Business
     Testimony of Ann Bamesberger, Sun Microsystems, November 2007, U.S. House of
                                                                                                xlviii
Representatives                                                                                         WorldatWork 2005 Flexible Work Schedules Survey




                                                                                                TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page                    21 of 23
Workshifting Benefits: The Bottom Line



xlix                                                                                         lxxiii
      BLS 2007 to Jan 2008 for Professional and Business Services)                                  EIA.doe.gov, February 2010
l                                                                                            lxxiv
   Karol Rose, author of Work-Life Effectiveness: Bottom Line Strategies for Today’s                BusinessWeek Research and TransitCenter, 2/08, The Impact of Commuting on
Workplace, WorldatWork, 2006 (used the midpoint between the high and low extreme)            Employees. 1048 respondents from 3 major metros (SF, Chicago, NY)
li                                                                                           lxxv
    12/2008 Bureau of Labor Statistics: average earnings for service industries (excluding         2005 Reason Foundation — The Quiet Success: Telecommuting’s Impact on
transportation)                                                                              Transportation and Beyond. Telecommuters reduce their daily trips by 53 to 77% on
lii
     2009 Telework Trendlines, WorldatWork                                                   telecommuting days. We use 70% because part-time teleworkers are more apt to combine
liii
     Ibid                                                                                    errands on work days. A more conservative figure of 65% is used in full time scenarios.
liv                                                                                          lxxvi
     Small Business Problems and Priorities, National Federation of Independent Business,           U.S. Bureau of Transportation Omnibus Household Survey, 2003
                                                                                             lxxvii
2008                                                                                                 U.S. Bureau of Transportation Omnibus Household Survey, 2003
lv                                                                                           lxxviii
     Managing Talent in a Turbulent Economy: Keeping Your Team Intact, Deloitte,                     The Impact of Commuting on Employees, BusinessWeek Research and
September 2009                                                                               TransitCenter, February 2008
lvi                                                                                          lxxix
     Karol Rose, author of Work-Life Effectiveness: Bottom Line Strategies for Today’s              Colliers International 2008 non-reserved parking survey
                                                                                             lxxx
Workplace, WorldatWork, 2006                                                                       2008 BLS Consumer Spending Report. Mid-figure: averaged the difference in ‘food
lvii
      WorldAtWork member survey, October 2007                                                dining’ and ‘food home’ between 1 earner and 2 earner households and difference
lviii
      Telephone interview with S. Hurley, President of VIPDesk (7-09)                        between average Manager/Technical/Service workers and Retired persons. High case is
lix
     2009 Telework Trendlines, WorldatWork                                                   59% higher, and low case is 63% lower to match relative difference between highest and
lx
   Addressing Labor Shortage through Virtual Office and Telework Arrangements, as            lowest occupation figures.
                                                                                             lxxxi
quoted by Kristina Gribovskaja, Runzheimer International, October 2007                              2008 BLS Consumer Spending Report: Mid-figure, averaged the difference in clothes
lxi
     The Edge Report, Robert Half International / Career Builder.com, Sept 2008              for 1 earner and 2 earner households and difference between average
lxii
      The Edge Report, Robert Half International and Career Builder, Sept 2008; and Gen-     Manager/Technical/Service Workers and Retired persons. High case 71% higher, and low
eration Y, What Millennial Workers Want, Robert Half International and Yahoo!                case 42% lower to to match relative difference between highest and lowest occupation
HotJobs, 2008                                                                                figures.
                                                                                             lxxxii
lxiii
      Addressing Labor Shortage through Virtual Office and Telework Arrangements,                    Email from Senator Kerry legislative aide: gas is $.10 of the I.R.S. reimbursement
                                                                                             lxxxiii
AARP as quoted by Kristina Gribovskaja, Runzheimer International, October 2007                       2008 IRS deduction of $.55/mile includes $.10 for gas.
                                                                                             lxxxiv
lxiv
      Moen, Erickson, Argarwal, Fields, Todd,; 2000, The Cornell Retirement and Well-                2008 American Community Survey (U.S. Census). Lowest commute time was
Being Study, Ithaca, NY: Bronfenbrenner Life Course Center at Cornell University.             Lowton OK, highest was New York NY, average is based on all commuters
                                                                                             lxxxv
lxv
      Bureau of Labor Statistics                                                                     2009 WorldatWork Telework Trendlines; reinforced by adoption rate among Sun
lxvi
      AccessibleSociety.org, Economics and People With Disabilities                          Microsystems program participants (79%) and 2007 CDW-G Telework Report (79%
lxvii
       U.S. Bureau of Labor Statistics                                                       federal, 63% private sector).
                                                                                             lxxxvi
lxviii
       Source: U.S. Bureau of Labor Statistics, Monthly Labor Review, November 2007                  How Employers and Workers Can Strike a Balance, University of Connecticut and
lxix
      The Impact of Commuting on Employees, BusinessWeek Research and Transit Cen-           Rutgers University, Center for Survey Research and Analysis and John J. Heldrich Center
ter, February 2008                                                                           for Workforce Development; Work and Family. 1999
                                                                                             lxxxvii
lxx
      The Telework Coalition (Telcoa.org)                                                             Grzywacz and Casey, Workplace Flexibility Associated with Reduced Absences
lxxi
      Bureau of Transportation Statistics (BTS) Omnibus Household Survey. Average            and Improved Job Commitment, Wake Forest University School of Medicine, April 2008
                                                                                             lxxxviii
commute is 15 miles each way                                                                          CDW-G 2007 Telework Report
                                                                                             lxxxix
lxxii
       2005 Reason Foundation — The Quiet Success: Telecommuting’s Impact on Trans-                  CDW-G 2007 Telework Report
                                                                                             xc
portation and Beyond. Telecommuters reduce their daily trips by 53 to 77% on                     The Reason Foundation, Building Roads to Reduce Traffic Congestion in America's
telecommuting days. We use 70% because part-time teleworkers are more apt to hold and        Cities: How Much and at What Cost? August 2006
                                                                                             xci
combine errands for work days. A more conservative figure of 65% should be used in full          2007 Urban Mobility Report, Texas Transportation Institute at Texas A&M
time scenerios.                                                                              University.




                                                                                             TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page                   22 of 23
Workshifting Benefits: The Bottom Line



xcii
      Ibid
xciii
       Ibid
xciv
      CDW-G 2007 Telework Report
xcv
      A study of over 3,000 employees showed that those with flexible schedules were less
likely to have health problems that affect their job performance.
xcvi
      Oil-Price.net: of 2/21/2010
xcvii
       Energy Information Administration, Petroleum Supply Annual 2005, June 2006.
xcviii
        U.S. Energy Information Administration
xcix
      EPA Emission Facts: Average Annual Emissions and Fuel Consumption
c
   Environmental impact estimates were made using the Environmental Defense Fund
Paper Calculator. For more information visit http://www.papercalculator.org.
ci
    Washington Post, January 29, 2010, US pledges 17% emissions reduction by 2020;
U.S. Energy Information Administration: Inventory of Greenhouse Gas Emission and
Sinks 1990-2007: Transportation sector for light cars and truck was 1085 (Tg CO2 Eq.)
in 2005
cii
     Washington Post, January 29, 2010, US pledges 17% emissions reduction by 2020
                                                                                                     This paper was prepared for Citrix Online
ciii
     Broadband Services: Economic and Environmental Benefits, American Consumer
Institute, 2007
civ
                                                                                              © 2010, Telework Research Network / Aerodite, Inc.
     Traffic Safety Facts NHSTA, August 2008
cv
     Federal Highway Administration 2005
cvi
     Trafficsafety.org, Network of Employers for Traffic Safety – 10 Facts Employers Must
Know, 2005
cvii
      Ibid
cviii
       RoadRagers.com 2004 composite statistics                                                  When referencing this document please refer to:
cix
     CommuteSolutions.org: 2006 state and local construction, improvement and repair,
maintenance, and operations
cx
     Hartgen and Fields, Building Roads to Reduce Traffic Congestion in America’s Cities,
                                                                                                          TeleworkResearchNetwork.com
The Reason Foundation, August 2006                                                                       (Kate Lister & Tom Harnish, 2010)
cxi
     Vermont Department of Public Services, Understanding Broadband Deployment in
Vermont, based on data reported in Adelphia’s 2005 Annual Report.
cxii
cxiii
      2007 Urban Mobility Report                                                                      Workshifting Benefits: The Bottom Line
       U.S. Senate, Committee on Banking, Housing and Urban Affairs, Condition of our
Nation’s Infrastructure: Local Perspectives from Mayors, June 2008
cxiv
      Hartgen and Fields, Building Roads to Reduce Traffic Congestion in America’s Cit-
ies, The Reason Foundation, August 2006




                                                                                            TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page   23 of 23

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Workshifting benefits the bottom line

  • 2. TABLE OF CONTENTS INTRODUCTION................................................................................... 3   OTHER EMPLOYEE BENEFITS .............................................................. 14   TELEWORK SAVINGS CALCULATOR........................................... 4   TOTAL EMPLOYEE SAVINGS ............................................................... 14   GENERAL ASSUMPTIONS ....................................................................... 5   COMMUNITY SAVINGS ................................................................... 15   EMPLOYER BENEFITS....................................................................... 6   OIL SAVINGS ....................................................................................... 15   PRODUCTIVITY ...................................................................................... 6   GREENHOUSE GAS (GHG) SAVINGS ................................................... 16   REAL ESTATE, ELECTRICITY, OFFICE ................................................... 7   TRAFFIC ACCIDENTS & RELATED COSTS............................................ 16   EXPENSES .............................................................................................. 7   HIGHWAY MAINTENANCE ................................................................... 17   ABSENTEEISM ........................................................................................ 8   OTHER COMMUNITY BENEFITS ........................................................... 18   ATTRACTION AND RETENTION .............................................................. 9   TOTAL COMMUNITY BENEFITS ........................................................... 18   OTHER BENEFITS ................................................................................. 11   TOTAL OVERALL BENEFITS ................................................................ 19   TOTAL EMPLOYER BENEFITS .............................................................. 11   SUMMARY ........................................................................................... 19   EMPLOYEE BENEFITS ..................................................................... 12   TELEWORK RESEARCH NETWORK ........................................... 20   GASOLINE EXPENSES .......................................................................... 12   CITRIX ONLINE ................................................................................. 20   OTHER WORK EXPENSES .................................................................... 13   FOOTNOTES ......................................................................................... 21   TIME SAVINGS ..................................................................................... 13   TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 2 of 23
  • 3. Workshifting Benefits: The Bottom Line INTRODUCTION Federal employees have been required to telework to the maximum extent possible since 2000iv (though only 5.2% do sov). However, the current administration’s proposed budget for 2011 calls for a The purpose of this paper is to quantify the benefits of workshift- 50% increase in telework.vi Both the House and Senate have ing — specifically working from home — has for employers, em- passed bills aimed at enforcing federal telework mandates.vii More ployees, and the community. Citrix Online coined the term ‘work- than two dozen federal, state, and local laws aimed at encouraging shifting’ to describe the growing trend to working from anywhere this practice have been proposed, and in many cases enacted, over other than a traditional office through the use of web-based tech- the last two years. In 2009, twelve members of Congress urged the nology. The older and more traditional terms for this are telework- House Transportation Committee and House Committee on Energy ing or even telecommuting. Both of these terms are cited in this and Commerce to include telework incentives in the nation’s en- report to preserve its authenticity, since some of the data specifi- ergy and transportation laws. In March of 2010, the White House cally cited those terms. Conference on Workplace Flexibility put its stamp on the impor- tance of these strategies. Three decades have passed since the concept of using technology to work outside of a traditional office was conceived. A broad While worries over weather calamities, diseases, terrorism, fuel body of evidence now corroborates the many economic, environ- prices, and road closures frequently renew interest in workshifting, mental, and societal benefits that researchers predicted. Occasional less transient issues will drive widespread adoption in the years workshifting (one day a month) has grown significantly in recent ahead. Pollution sanctions, labor shortages, changing workforce years—increasing 74% from 2005 to dynamics, work-life balance issues, productivity, cost control, and 2008i, though few companies have traffic congestion conspire to reinforce that work is what people adopted it as a regular, multiple days do, not a place they go. Though cultural obstacles remain, techno- per week, business practice. logical innovation has removed many of the practical barriers. In fact, less than 2% of employees con- TechCast, a virtual think tank based at George Washington Uni- sider home their primary place of versity, forecasts that 30% of the employees in industrialized na- workii, although theoretical estimates tions will teleworkviii 2–3 days a week by the year 2019. What’s and empirical evidence suggest that ap- more, they estimate the market for related products and services at proximately 40% hold jobs that could $400 billion a year.ix be performed remotely, at least part of the time.iii Missing from the body of knowledge available to date is a quanti- tative synthesis of the potential benefits that regular home-based TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 3 of 23
  • 4. Workshifting Benefits: The Bottom Line work can offer companies, employees, and communities. This pa- While there are many other benefits, not all are easily reduced to per aims to fill that gap. numbers. These are listed at the end of each section along with some that were considered too subjective to include. Half time home-based work is assumed throughout this report (roughly the national average for those who do). It is organized into three sections: employer benefits, employee benefits, and TELEWORK SAVINGS community savings. The total value of benefits is provided for 50, 100, and 500 participants, and for the nation as a whole. The quan- CALCULATOR tified benefits include: The quantitative conclusions in this report were derived from the Telework Research Network’s (TRN) proprietary Telework Sav- Employer Benefits: ings Calculator. The assumptions behind the calculator are based • Productivity on an analysis of over 250 case studies, research papers, books, • Real estate and related costs and other documents on workshifting and related topics. Addi- • Turnover tional information was derived from dozens of interviews with the • Absenteeism nation’s top virtual employers, workshifting advocates and naysay- ers, researchers, and leaders of successful advocacy programs in Employee Benefits both the public and private sector. • Gas The Telework Savings Calculator was developed in 2008 to quan- • Work related expenses tify the potential benefit of home-based work for every city, • Time county, congressional district and state in the nation. Updated an- nually, it has been used by company and community leaders Community Savings: throughout the U.S. and Canada to determine the economic, envi- • Oil ronmental, and societal potential of workshifting. • Greenhouse gases Conclusions derived from the calculator have been quoted in the • Accidents Wall Street Journal, Harvard Business Review, Washington Post, • Highway maintenance and dozens of other publications. Recognizing that financial, labor, and travel issues vary greatly from industry to industry and region to region, TRN recently intro- TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 4 of 23
  • 5. Workshifting Benefits: The Bottom Line duced a customizable calculator on its Web site. It allows compa- • Reason Foundation nies and communities to quantify their own potential workshifting • Colliers International savings based on dozens of adjustable parameters such as real es- • International Facilities Management Association tate costs, turnover, absenteeism, participation rate, frequency, la- bor costs, etc. • TalentKeepers • CommuteSolutions.org Both the standard and custom calculator are available on the Telework Research Network’s Web site (http://TeleworkResearch Network.com). GENERAL ASSUMPTIONS A branded version of the calculator is available to companies and Below are the general assumptions behind the conclusions in this communities that wish to use it as an advocacy tool or workshift- paper. Additional assumptions, specific to each projected benefit, ing tracking system. are summarized in the sections that follow. The primary sources of data used in the calculator are: General Assumptions • Half-time home-based work (roughly the average for those • U.S. Census Bureau’s American Community Survey who currently dox) is assumed in all scenarios • U.S. Bureau of Transportation Statistics • U.S. population model: • U.S. Environmental Protection Agency - Assumes 40% of workers could work from home at least • U.S. Bureau of Labor Statistics part of the timexi (not including those who already do so regu- • U.S. Department of Energy larly), and 79% of that population would choose to if given the • U.S. National Highway Safety Administration opportunityxii • Federal Highway Administration • Company model: • U.S. General Services Administration - Assumes 50, 100, and 500 workshifters • American Management Association • Harris Interactive • Notations throughout: B = Billion, M = Million • Wolters Kluwer / CCH • Business Week Research • Cushman & Wakefield TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 5 of 23
  • 6. Workshifting Benefits: The Bottom Line EMPLOYER BENEFITS • More effective time management: Email and other asynchro- nous communications can be time-managed more effectively and are less apt to include non-work digressions. Half-time home-based work among those with compatible jobs • Feeling like a trusted employee: A sense of empowerment and could save employers over $10,000 per employee per year—the commitment is consistently shown to be one of the highest con- result of increased productivity, reduced facility costs, lowered ab- tributors to employee job satisfaction.xiv senteeism, and reduced turnover. The cumulative benefit to U.S. • Flexible hours: For those who are able to flex their hours as companies would exceed $400 billion a year. well as their location, workshifting allows them to work when they are most productive. PRODUCTIVITY • Longer hours: Many employees work during the time they would have otherwise spent commuting. In fact, overworking Employer—Productivity Assumptions: is a significant problem. • 27% increase in productivity on workshifting days (see in- dustry research) INDUSTRY RESEARCH ON PRODUCTIVITY • Value of employee time = $32,136 per man-year (Bureau of Employees admit to wasting two hours a day (not including lunch Labor Statistics average earningsxiii ) and scheduled breaks).xv Lack of management buy-in is the most commonly cited obstacle Businesses lose $600 billion a year in workplace distractions.xvi to the adoption of workshifting programs. It’s clear managers fear that left unmonitored, employees will not work as hard as they oth- Best Buy’s average productivity increased 35% through its flexible erwise would. work program.xvii In fact, study after study shows that people who work from home A Work+Life Fit / BDO Seidman survey of CFOs showed 75% are more productive than their office counterparts. Contributing agree that flexible work increases productivity.xviii factors include: British Telecom estimates productivity increased 20% through • Fewer interruptions: Home-based workers are not distracted by telecommuting.xix the many time drains that take place in a traditional office— morning chatter, coffee breaks, long lunches, rumor mills, Dow Chemical estimates a 32.5% increase in productivity among birthday parties, football pools, etc. its teleworkers.xx TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 6 of 23
  • 7. Workshifting Benefits: The Bottom Line Surveys and pilots conducted by IBM suggest that telework em- REAL ESTATE, ELECTRICITY, OFFICE ployees can be up to 50% more productive.xxi EXPENSES Alpine Access, one of the nation’s largest all-virtual employers, Employer—Real Estate Assumptions: attributes a 30% increase in sales and 90% reduction in customer complaints to its home-based agents.xxii • Average office cost = $16,422/yearxxvii • Reduction with half-time workshifting = 18%xxviii American Express teleworkers handled 26% more calls and pro- duced 43% more business than their office-based counterparts.xxiii • Electricity savings = 4,400 kWh per person, per yearxxix Compaq Computer Corporation documented increased teleworker Traditional offices are expensive, inefficient, inflexible, and diffi- productivity ranging from 15 to 45%.xxiv cult to scale (particularly down). Workshifting programs can re- duce the capital drain of owning or leasing a building. Along with Over two-thirds of employers report increased productivity among the lease/purchase costs, a workshifting program can save on park- their teleworkers.xxv ing lot leases, furniture, supplies, maintenance, security, janitorial, insurance, taxes, common area, and other related costs. These pro- Sun Microsystems found that teleworkers spend 60% of the com- grams can also reduce ADA, EPA, and OSHA compliance costs. muting time they save performing work for the company.xxvi Workshifting can help companies consolidate inefficient space and eliminate the need for a local presence in regionally regulated in- Annual Increase in Productivity for Businesses dustries such as healthcare, insurance, and finance. Half-time Home-based Through office hoteling and hot-desking programs, even part-time Workers 50 100 500 U.S. workshifting can reduce office-related expenses. Productivity Increase $288,176 $576,351 $2,881,756 $235.4 B INDUSTRY RESEARCH ON REAL ESTATE SAVINGS 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, with flexible work options for 17,000 em- TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 7 of 23
  • 8. Workshifting Benefits: The Bottom Line ployees (2,000 primarily working at home, 15,000 up to 2 days a ABSENTEEISM week).xxx Unisys reduced its real estate costs by 87% through telecommut- Employer—Absenteeism Assumptions: ing.xxxi • Average reduction in absenteeism = 3.7 days a yearxxxvi McKesson Corporation’s telework program saves them $1 million • Annual cost per unscheduled absence = $310xxxvii a year in real estate costs.xxxii Unscheduled absences cost employers billions. They necessitate The U.S. Patent & Trademark Office avoided $11 million in new staffing redundancies, they inconvenience coworkers and custom- real estate expenses through telework and office hoteling. Over ers, and they reduce productivity. Telework has proven to be the 80% of eligible staff telework (4,000 employees, 70% of staff).xxxiii second most effective method of reducing absences (flexible scheduling is first).xxxviii IBM’s 80,000 teleworkers save the company $700 million a year in real estate costs.xxxiv Home-based workers often continue to work when they're sick. They’re able to return to work more quickly following pregnancy Mindwave Research, a 21-person marketing research company or surgery. And they’re able to handle personal appointments (e.g., reduced office space by nearly 70%by enabling more than half its cable installer, appliance delivery, teacher consult, etc.) without employees to become full-time teleworkers. They estimate the com- losing a full day of work. pany saves more than $11,000 per month in reduced rent and en- ergy consumption.xxxv Home-based workers are sick or absent less often because they: • Experience less stress—a trigger in 85% of chronic dis- eases;xxxix,xl Annual Saving in Real Estate & Electricity for Businesses Half-time • Are less exposed to sick co-workers; Home-based • Are exposed to fewer occupational and environmental hazards; Workers 50 100 500 U.S. • Avoid driving—the most dangerous part of a worker’s day;xli • Have more time for exercise. Electricity Savings $151,846 $303,692 $1,518,462 $124.0 B TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 8 of 23
  • 9. Workshifting Benefits: The Bottom Line Perhaps the most important reason they’re absent less is that they ATTRACTION AND RETENTION are more satisfied with their job and therefore less likely to fabri- cate an illness.xlii Employer—Attraction and Retention Assumptions: INDUSTRY RESEARCH ON ABSENTEEISM • 25% reduction in attritionxlix • Cost of turnover = 138% of wagesl 78% of employees who call in sick, really aren't. They do so be- cause of family issues, personal needs, and stress.xliii • Average U.S. wage = $32,136li Unscheduled absences cost employers $1,800/employee per year; Almost 80% of employees say they would like to work from home, that adds up to $300 billion per year for U.S. companies.xliv at least part of the time.lii More than a third say they’d choose the option to work from home over a pay raise.liii The U.S. GSA telework cost/benefit model shows a 63% reduction in unscheduled absences per teleworker.xlv Prior to the 2009 recession, being able to hire and retain good peo- ple was one of management’s top non-financial concerns.liv As the The spread of contagious disease is at the root of a federal policy recovery continues, retention and hiring problems will be exacer- that requires all eligible employees to telework to the maximum bated. Nearly half of employees surveyed in August 2009 said they extent possible.xlvi were either looking for a new job or planning to do so when the recession was over.lv Forty percent of the labor force is now over The American Management Association (AMA) reduced absences the age of 40 and Baby Boomers are already slipping into retire- by 63% through telework.xlvii ment. Businesses will have to fight for top talent in the decade ahead. 64% of managers felt reduced absenteeism was a strong or very strong business reason to allow flexible work.xlviii The cost of replacing an employee extends far beyond the recruit- ing process; it includes separation costs, temporary replacement Annual Saving Due to Reduced Absenteeism for Businesses costs, training costs, and lost productivity. A lost employee can Half-time also lead to lost customers, coworkers, and corporate intelligence. Home-based Workshifting enhances attraction and retention because it: Workers 50 100 500 U.S. Absenteeism • Is among the top non-financial benefits desired by employees; Savings $56,700 $113,400 $567,000 $46.3 B • Expands the talent pool beyond geographic boundaries; TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 9 of 23
  • 10. Workshifting Benefits: The Bottom Line • Provides access to disabled workers; managers) but they are particularly attracted to flexible work ar- • Offers alternatives that would have otherwise kept parents and rangements (ranked as 8 on a 10 scale for impact on overall job senior caregivers out of the full-time workforce; satisfaction).lxii • Appeals to retiring workers. 70% of Baby Boomers plan to work for pay after retirement by seeking flexible work arrangements and part-time schedules that INDUSTRY RESEARCH ON ATTRACTION AND RETENTION allow them to pursue other interests.lxiii Attrition costs a total of 75% of a non-exempt person’s salary and 71% of retired workers who later decided to go back to work 150 to 200% of an exempt person’s salary.lvi originally retired because of a desire for more flexibility than their job offered.lxiv 85% of employers say telework has a moderate to high impact on employee retention.lvii 5.4 million Americans with some college education or more aren't working.lxv Turnover among VIPDesk’s home-based customer agents is less than 10%; compared to 100–150% typical in a traditionally staffed More than 12%of the working age population is disabled (16 mil- call center.lviii lion). A full three quarters of unemployed workers with disabilities cite discrimination in the workplace and lack of transportation as 35% of employees who were not currently teleworking (but felt major factors that prevent them from working.lxvi they could) said they would be willing to give up some pay in ex- change for the option to do so 2 days a week.lix 52 million Americans aren't working and 26 million work part time.lxvii 68% of Shering-Plough Corporation’s telework program partici- pants say that being able to telework is a factor in their decision to Only 75%of women, still the traditional primary caregivers, age stay with the company.lx 25–54 participate in the labor force (compared to 90%of men). Almost a quarter of women work part time (16.5 million), com- 72% of employees say flexible work arrangements would cause pared to 10% of men.lxviii them to choose one job over another; 37% specifically cite tele- working.lxi Two-thirds of employees would take another job to ease the com- mute.lxix Gen Y workers are more difficult to recruit (as reported by 56% of hiring managers) and to retain (as reported by 64% of hiring TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 10 of 23
  • 11. Workshifting Benefits: The Bottom Line Nortel estimates that they save $100,000 per employee they don't • Avoidance of environmental sanctions / city access fees; have to relocate.lxx • Virtual communications can equalize personalities; • Emphasis on performance-based management; Annual Saving Due to Reduced Turnover for Businesses • Reduced potential for discrimination; Half-time Home-based • Increased employee empowerment; Workers 50 100 500 U.S. • Improved work-life balance; Turnover • Reduced overtime among shift workers; Savings $38,046 $76,092 $380,459 $31.1 B • Reduced need for overstaffing to accommodate peak loads; • More effective and less expensive 24/7 global coverage; OTHER BENEFITS • Avoidance of local labor burnout; • Ability to hire people without brick and mortar presence. Other benefits, not quantified in the company model include: • Potential financial incentives: A number of state and local pro- TOTAL EMPLOYER BENEFITS grams provide financial and non-financial incentives for work- shifting. Notable programs include: Total Annual Employer Savings for Businesses - TeleworkVA (Virginia; $3,500 per new telecommuter and Half-time free assistance), Home-based - 36CommutingSolutions (Denver; free assistance), Workers 50 100 500 U.S. - The Clean Air Campaign (Georgia; tax credits and free assis- Productivity Incr. $288,176 $576,351 $2,881,756 $235.4 B tance), and RE/Electricity - Telecommute Connecticut (free assistance). Savings $151,846 $303,692 $1,518,462 $124.0 B Links to these and other state and local programs are available Absenteeism Savings $56,700 $113,400 $567,000 $46.3 B at http://TeleworkResearchNetwork.com Turnover • Improved continuity of operations; Savings $38,046 $76,092 $380,459 $31.1 B • Higher community citizenship scores for being environmen- Total Savings $534,768 $1,069,535 $5,347,676 $436.8 B tally and labor friendly; TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 11 of 23
  • 12. Workshifting Benefits: The Bottom Line $5,800/year with half-time home-based working and over $11,000 a year with full-time participation. EMPLOYEE BENEFITS INDUSTRY RESEARCH ON POTENTIAL GAS SAVINGS Half-time home-based work could save employees between $2,000 During the 2008 run up in fuel prices, 92% of employees said they and $6,800 per year—the result of reduced driving and fewer were concerned with the high cost of fuel. 80% of them specifically work-related expenses. That adds up to over $170 billion a year cite the cost of commuting to work. 73% feel their employers that could go toward savings or be spent elsewhere in the econ- should take the lead in helping them reduce their commuting costs. omy. Time saved per employee would total almost 2 workweeks a During the same survey, two-thirds said they’d take another job to year. ease the commute.lxxviii GASOLINE EXPENSES Annual Saving Due to Reduced Gas Usage Half-time Commuter—Gas Savings Assumptions: Home-based Workers 50 100 500 U.S. • Commuting miles/day = 30lxxi Gas Saved ($) $18,080 $36,161 $180,804 $14.8 B • % Reduction in driving = 75%lxxii Average of $362 per person per year • Gas savings = $2.61/gallonlxxiii At the peak of the 2008 fuel price spike, employees on tight budg- ets were desperate for relief.lxxiv Research suggests that while not all travel is eliminated on tele- commuting days (because errands that used to be performed during the commute now require separate trips), the majority is.lxxv While the average trip to and from work is 30 miles, a third of commuters have longer drives.lxxvi Those travelling over 60 miles round trip (11% of commuterslxxvii ), would save an average of TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 12 of 23
  • 13. Workshifting Benefits: The Bottom Line OTHER WORK EXPENSES office tax deductions, and car insurance rate reductions. For those with full-time work from home arrangements, a move to a less ex- pensive community offers a substantial cost-saving option. Consumer—Other Work Expense Assumptions: • Parking: Low = $0, Mid = $12.24, High = $27.02/daylxxix • Food (net of food at home): Low = $2.73, Mid = $7.37, High = $11.72/daylxxx Other Work Related Savings Per Person/Yr Low Mid High • Clothing: Low = $1.40, Mid = $2.41, High = $4.12/daylxxxi $1,966 $4,203 $6,808 • Incidentals: Certainly, they’re there—tolls, gifts, socializing, lunch-time shopping—but lacking facts, we’ve assumed zero. TIME SAVINGS • Non-gas portion of IRS mileage allowance = .45/milelxxxii • Cost of extra home office electricity = $176.40/yearlxxxiii Consumer—Time Savings Assumptions: • Average commute = 52 minutes round trip; Low = 29 min- utes; High = 79 minutes lxxxiv Annual Saving in Other Work Expenses Half-time • Equivalent days calculation based on 8-hour days. Home-based Workers 50 100 500 U.S. Half-time home-based work can add up to an additional 2–3 work- Other Work Exp. $192,086 $384,173 $1,920,863 $156.9 B weeks of free time a year—time typically spent with family and friends, on hobbies, exercising, sleeping, or, as stated earlier, working. For employers, that means better work-life balance, hap- The cost of working in an office doesn’t stop at the gas pumps. pier people, and greater loyalty. While socio-economic, geographic, and occupational differences create a wide range of potential employee costs, the savings are INDUSTRY RESEARCH ON COMMUTER TIME SAVINGS significant for all who workshift from home. 79% of employees say they’d like to work from home.lxxxv Other common employee savings, not included in the model in- clude: Decreased daycare/eldercare expense—particularly for 90% of home-based workers say they are happier with the balance those who are able to adjust their hours around those needs, home in their lives because of working from home.lxxxvi TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 13 of 23
  • 14. Workshifting Benefits: The Bottom Line A study of over 3,000 employees showed that those with flexible economy.xcii schedules were less likely to have health problems that affect their job performance.lxxxvii Traffic jams idle away 2.9 billion gallons of gas, and release more than 58 million extra pounds of CO2 every year.xciii The top reasons employees want to work from home (federal em- ployees/private sector) are: No commute (63–71%), greater flexi- OTHER EMPLOYEE BENEFITS bility (49–66%), greater productivity (29–40%), and saving money (28–31%).lxxxviii Other benefits, not quantified in the employee model include: • Greater flexibilityxciv 41% of workers who have the option to telework are “very satis- • Fewer sicknessesxcv fied” with their jobs, compared to only 27% of those who are of- • Eldercare/childcare savings; home office tax breaks fice-bound.lxxxix If traffic continues to grow at the current pace, over the next cou- ple of decades, drivers in many of the nation’s cities will be sitting in daily traffic jams worse than those that plague Los Angeles 8 hours a day. Commutes will take almost twice as long.xc Total Annual Employee Savings Half-time In cities such as Chicago, Houston, and Seattle, during peak com- Home-based mute times travelers have to allow twice as long as they normally Workers 50 100 500 U.S. would if they want to be sure to arrive on time.xci For busy road Gas $18,080 $36,161 $180,804 $14.8 B warriors, this essentially cuts their productivity in half. Other Work Expenses $192,086 $384,173 $1,920,863 $156.9 B Total Savings $210,167 $420,333 $2,101,666 $171.7 B Nationwide, 4.2 billion hours are spent driving in traffic every TOTAL EMPLOYEE SAVINGS year. That robs $78 billion worth of productivity from the U.S. Total Per Person Employee Savings / Year Scenario Low Avg. High Time (days per person) 5.7 10.1 15.4 $ Saved $1,966 $4,203 $6,808 TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 14 of 23
  • 15. Workshifting Benefits: The Bottom Line COMMUNITY SAVINGS OIL SAVINGS At the national level, half-time home-based work could: • Save $23 billion a year in imported oil; Community—Oil Savings Assumptions: • Cut Persian Gulf imports by 37%; • Gas savings: see Employee section • Reduce greenhouse gases by the equivalent of taking almost 10 • Import cost = $80.07/barrelxcvi million cars off the road; • 19.6 gallons of gas per barrel of crudexcvii • Achieve 27% of the nation’s 2020 goal for GHG reduction from light cars and trucks; • Persian Gulf oil imports = 790 million barrelsxcviii • Prevent over 95,000 traffic injuries and deaths; • Save over $11 billion in accident costs; • Lower highway maintenance costs almost $2 billion a year. Annual Oil Savings Half-time Even small companies can make a big impact on improving com- Home-based munity life through workshifting as shown in the analysis that fol- Workers 50 100 500 U.S. lows. 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 TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 15 of 23
  • 16. Workshifting Benefits: The Bottom Line GREENHOUSE GAS (GHG) SAVINGS TRAFFIC ACCIDENTS & RELATED COSTS Greenhouse Gas Savings (GHG) Assumptions: Community—Traffic Accident Assumptions: • U.S. GHG reduction stated in million metric tons (MMT) • Number of accidents = 1.4 fatalities per 100 million vehicle • One gallon of gas = 20.9 pounds of greenhouse gasesxcix miles traveled (VMT), and 83 injuries per 100 million VMTciv • Equivalent cars based on 5.5 average tons of GHG per • Cost/accident = $3.2 million/fatality, $68,170/injurycv car/yearc INDUSTRY RESEARCH ON TRAFFIC ACCIDENT COSTS • Goal for greenhouse gas reduction by 2020 = 17% of 2005 levels for CO2 ci Traffic accidents cost $60 billion a year and result in 3 million lost workdays.cvi INDUSTRY RESEARCH ON GREENHOUSE GASES More than a quarter of accidents occur during the commute to and from work, making it the most dangerous part of the day.cvii The Obama administration pledged to cut the greenhouse gas CO2 by 17% by 2020 from 2005 levels.cii 70% of drivers admit to making obscene gestures, tailgating, and blowing their horns to express their irritation; over 40% retaliate Home-based work has the additional potential to reduce green- against or get into confrontations with fellow drivers.cviii house gas emissions by 28 million tons due to reduced office con- struction, and 312 million due to energy saved by businesses.ciii Annual Greenhouse Gas Reduction Annual Reduction in Traffic Accident Costs Half-time Half-time Home-based Home-based Workers 50 100 500 U.S. Workers 50 100 500 U.S. *52.8 Greenhouse Gases 65 tons 129 tons 647 tons MMT Accident Savings ($) $14,211 $28,421 $142,107 $11.6 B Equiv. Cars 12 23 117 9,596,859 *including 50MMT of CO2 or 27% of U.S. 2020 Goal TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 16 of 23
  • 17. Workshifting Benefits: The Bottom Line HIGHWAY MAINTENANCE Community—Highway Maintenance Assumptions: • Highway maintenance cost per VMT = $.017cix INDUSTRY RESEARCH ON HIGHWAY MAINTENANCE The cost per lane-mile of urban highway is almost $4 million.cx The cost per mile of information superhighway is $20,000. cxi 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%.cxii In 2008, four big-city mayors told Congress they were over- whelmed by infrastructure needs and couldn’t maintain their water systems, roads, and rail networks without more federal help.cxiii By 2025, the U.S. will need an additional 104,000 lane-miles of capacity to handle the projected load. Funding those improve- ments will cost $525 billion tax dollars.cxiv Annual Highway Maintenance Savings Half-time Home-based Workers 50 100 500 U.S. Vehicle Miles 140,625 281,250 1,406,250 114.9 B Maintenance $2,391 $4,781 $23,906 $2.0 B TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 17 of 23
  • 18. Workshifting Benefits: The Bottom Line OTHER COMMUNITY BENEFITS TOTAL COMMUNITY BENEFITS Beyond the community benefits quantified in this report, wide- spread home-based workshifting could: • Reduce human congestion; Total Annual Community Savings • Revitalize cities by reducing traffic—a disincentive to visitors; Half-time Home-based • Improve emergency responsiveness; Workers 50 100 500 U.S. • Reduce road rage; Barrels of Oil 353 707 3,534 *288,712,881 • Improve air quality; * 36.6% of Persian Gulf imports • Increase productivity among non-workshifters by reducing $ Saving for Oil $28,275 $56,550 $282,749 $23.1 B travel times; Greenhouse Gases 65 tons 129 tons 647 tons 52.8 MMT • Reduce pollution from road-work and office construction; Equiv. Cars 12 23 117 **9,596,859 • Preserve open spaces; ** including 50MMT of CO2 or 27% of U.S. 2020 Goal • Further reduce travel through widespread use of virtual tech- Accident Savings $ $14,211 $28,421 $142,107 $11.6 B nologies; Vehicle Miles 140,624 281,250 1,406,250 114.9 B • Increase employment; Maintenance $2,391 $4,781 $23,906 $2.0 B • Provide portable work options for military families; Total Savings $44,876 $89,752 $448,762 $36.7 B • Reduce the offshoring of jobs and homeshore some that have already been lost; • Raise the standard of living in rural and disadvantaged areas; • Reduce terrorism targets of opportunity. TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 18 of 23
  • 19. Workshifting Benefits: The Bottom Line TOTAL OVERALL BENEFITS • Human resource professionals see it as a way to recruit and re- tain the best people. Total Annual Benefits—All Constituents • Employees desire it because it saves time and money, and im- proves the quality of their lives. Half-time Home-based • Baby Boomers see workshifting as a flexible alternative to full Workers 50 100 500 U.S. retirement. Total Employer $534,768 $1,069,535 $5,347,676 $436.8 B • Millennial workers appreciate it as a way to work on their own Total Employee terms. $210,167 $420,333 $2,101,666 $171.7 B Total Community $44,876 $89,752 $448,762 $36.7 B • Disabled workers, rural residents, and military families find it an answer to their special needs. TOTAL $789,810 $1,579,621 $7,898,104 $645.2 B • Urban planners see it as a strategy to fill the gap between transportation system demand and supply. • Governments see it as a way to reduce highway wear and tear SUMMARY and alleviate the strain on the nation’s crumbling transportation infrastructure. • Organizations rely on it to ensure continuity of operations in Workshifting, and in particular, home-based work, offers a rela- the event of a disaster or pandemic. tively simple, high return-on-investment solution to some of the nation’s most vexing problems: • Environmentalists applaud it because telecommuting can sig- nificantly reduce greenhouse gases and energy usage. • Financial managers endorse it for its cost savings and increased productivity potential. • Work-life experts encourage it as a way to address the needs of families, parents, and senior caregivers. • Workforce planners see workshifting as a way to mitigate the “brain drain” effect of retiring Boomers. TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 19 of 23
  • 20. Workshifting Benefits: The Bottom Line TELEWORK RESEARCH CITRIX ONLINE NETWORK Citrix Online provides secure, easy-to-use online solutions that en- able people to work from anywhere with anyone. Whether using Kate Lister and Tom Harnish established the Telework Research GoToMyPC® to access and work on a remote PC, GoToAssist® Network (TRN) to gather, study, and share information about tele- to support customers or GoToMeeting® to hold online meetings, commuting and home-based work. Frustrated by managers’ reluc- GoToWebinar® for larger Web events and GoToTraining® for tance to initiate workshifting strate- interactive online training, our customers – more than 35,000 busi- gies, they aimed their popular press nesses and hundreds of thousands of individuals – are increasing book, Undress For Success—The Na- productivity, decreasing travel costs and improving sales, training ked Truth About Making Money at and service on a global basis. A division of Citrix Systems, Inc. Home (John Wiley & Sons, 2009), at (NASDAQ: CTXS), the company is based in Santa Barbara, Cali- employees so they would have the fornia. For more information, visit www.citrixonline.com or call facts necessary to negotiate, find, or (805) 690-6400. create remote work jobs, freelance careers, or home-based businesses. It For additional resources and research on workshifting, please visit has won the praise of work-life and Citrix Online’s blog, www.workshifting.com. telecommuting advocates including the Telework Coalition, Tele- work Canada, WorldatWork, and many others. Jack Nilles, the fa- For a free evaluation of GoToMeeting Corporate or GoToWebinar, ther of telework, wrote the foreword for the book. please visit http://www.gotomeeting.com. TRN’s Web sites (http://Undress4Success.com and For a free evaluation of GoToMyPC, please visit http://TeleworkResearchNetwork.com) offer a wide range of free https://www.gotomypc.com/. resources for researchers, companies, and individuals interested in telework. Their Telework Savings Calculator is available to com- panies and communities that want to encourage and track telework participation. The principals of TRN are available for research pro- jects, consulting, and writing/speaking projects. They can be reached at trn@teleworkresearchnetwork.com. TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 20 of 23
  • 21. Workshifting Benefits: The Bottom Line FOOTNOTES xxvii i International Facility Management Association 2009 (average rentable office space = WorldatWork.org: 2009 Telework Trendlines 377/sf per person); Cushman & Wakefield MarketBeat 2008 average $43.56/sf. ii 2008 American Community Survey (excluding self-employed persons) xxviii U.S. GSA telework program suggests half of offices can be eliminated with full time iii Matthews & Williams 2005 telework. Since half-time telecommuting would not eliminate all the associated offices, a iv Public Law (PL) 106-346 section 359, October 2000. figure of 18% reduction was used. v 2008 Status of Telework in the Federal Government—Report to Congress xxix Joseph Romm, The Internet and the New Energy Economy, Center for Energy and vi Washington Post, Feb. 11, 2010, Snowstorm’s possible plus: Advancing cause of Climate Solutions, Global Environment and Technology Foundation, 2002; Cost per kWh telework. per U.S. Energy Administration. Note: extra energy used at home office is shown as a vii H.R. 1722 Telework Improvement Act of 2009, S. 707 Telework Enhancement Act of reduction to employee savings. 2009 xxx Ann Bamesberger, Flex Your Force: Building the Virtual Office, Sun Executive viii Telework is the term used to describe any substitution of technology for work-related Boardroom travel (e.g. teleconferencing, video conferencing, telecommuting). It is a broader term (August ’07) and Sun Powerpoint Presentation: Talent Management: Attracting and than telecommuting though they are commonly used interchangeably. Retaining the Next Generation Workforce ix Techcast.org xxxi Gary J. Grimes, et al., Transportation Improvements Through Telework, Birmingham x Bureau of Labor Statistics – Work at Home in 2004 Alabama Center for Telecommunications Education and Research, July 2004) xi Matthews & Williams 2005 xxxii Telephone interview with Linda Casey, McKesson Corporation, August 2007. xii WorldatWork.org: 2009 Telework Trendlines; reinforced by adoption rate among Sun xxxiii 2008 U.S. Patent and Trademark Office Annual Report Microsystems program participants. xxxiv Innovisions Canada xiii 12/2008 Bureau of Labor Statistics - average earnings for service industries (excluding xxxv Avaya study as reported by MSNBC. transportation) xxxvi U.S. GSA Recommendations to Assist Cost Recovery / ROI Strategies and Budget xiv One More Time: How Do You Motivate Employees? Harvard Business Review, Planning, May 2006 (attributed to WorldatWork “Exploring Telework as a Business January 2003 Continuity Strategy” 2005); b) Non-telecommuting average of 2.4% (5.8 days) per year xv The Cost of Not Paying Attention: How Interruptions Impact Knowledge Worker Pro- CCH 17th Annual Unscheduled Absence Survey ductivity (Jonathan Spira, Joshua Feintuch), Basex, Inc., 2005 xxxvii CCH 17th Annual Unscheduled Absence Survey xvi Ibid xxxviii Ibid xvii Cali Ressler and Jodi Thompson, Why Work Sucks (Portfolio 2008) xxxix Safety & Practitioner, May 2008 xviii Cali Yost Work+Life Fit Inc / BDO Seidman, LLP, 2008 CFO Perspectives on Work xl CompTia Survey, October 2008 Life Flexibility xli National Council on Compensation Insurance Inc, December 2006 xix BT Options 2000 as reported by EuropeanTelework.org xlii CompTia Survey, October 2008 xx Jeff Zbar, Network World, December 4, 2002 xliii Hewitt LCG, Nucleus Absence Overview; and 2005 CCH Unscheduled Absence xxi Innovisions Canada Survey xxii xliv Email from J. Ball, co-founder of Alpine Access (February 2010) Hewitt LCG, Nucleus Absence Overview xxiii xlv Ibid U.S. GSA 2006 Cost Recovery ROI Strategies xxiv xlvi Ibid Public Law (PL) 106-346 section 359 xxv xlvii CompTIA survey, October 2008 Chuck Wilsker, the Telework Coalition, Unleashing the Hidden Productivity of Your xxvi Small Business Testimony of Ann Bamesberger, Sun Microsystems, November 2007, U.S. House of xlviii Representatives WorldatWork 2005 Flexible Work Schedules Survey TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 21 of 23
  • 22. Workshifting Benefits: The Bottom Line xlix lxxiii BLS 2007 to Jan 2008 for Professional and Business Services) EIA.doe.gov, February 2010 l lxxiv Karol Rose, author of Work-Life Effectiveness: Bottom Line Strategies for Today’s BusinessWeek Research and TransitCenter, 2/08, The Impact of Commuting on Workplace, WorldatWork, 2006 (used the midpoint between the high and low extreme) Employees. 1048 respondents from 3 major metros (SF, Chicago, NY) li lxxv 12/2008 Bureau of Labor Statistics: average earnings for service industries (excluding 2005 Reason Foundation — The Quiet Success: Telecommuting’s Impact on transportation) Transportation and Beyond. Telecommuters reduce their daily trips by 53 to 77% on lii 2009 Telework Trendlines, WorldatWork telecommuting days. We use 70% because part-time teleworkers are more apt to combine liii Ibid errands on work days. A more conservative figure of 65% is used in full time scenarios. liv lxxvi Small Business Problems and Priorities, National Federation of Independent Business, U.S. Bureau of Transportation Omnibus Household Survey, 2003 lxxvii 2008 U.S. Bureau of Transportation Omnibus Household Survey, 2003 lv lxxviii Managing Talent in a Turbulent Economy: Keeping Your Team Intact, Deloitte, The Impact of Commuting on Employees, BusinessWeek Research and September 2009 TransitCenter, February 2008 lvi lxxix Karol Rose, author of Work-Life Effectiveness: Bottom Line Strategies for Today’s Colliers International 2008 non-reserved parking survey lxxx Workplace, WorldatWork, 2006 2008 BLS Consumer Spending Report. Mid-figure: averaged the difference in ‘food lvii WorldAtWork member survey, October 2007 dining’ and ‘food home’ between 1 earner and 2 earner households and difference lviii Telephone interview with S. Hurley, President of VIPDesk (7-09) between average Manager/Technical/Service workers and Retired persons. High case is lix 2009 Telework Trendlines, WorldatWork 59% higher, and low case is 63% lower to match relative difference between highest and lx Addressing Labor Shortage through Virtual Office and Telework Arrangements, as lowest occupation figures. lxxxi quoted by Kristina Gribovskaja, Runzheimer International, October 2007 2008 BLS Consumer Spending Report: Mid-figure, averaged the difference in clothes lxi The Edge Report, Robert Half International / Career Builder.com, Sept 2008 for 1 earner and 2 earner households and difference between average lxii The Edge Report, Robert Half International and Career Builder, Sept 2008; and Gen- Manager/Technical/Service Workers and Retired persons. High case 71% higher, and low eration Y, What Millennial Workers Want, Robert Half International and Yahoo! case 42% lower to to match relative difference between highest and lowest occupation HotJobs, 2008 figures. lxxxii lxiii Addressing Labor Shortage through Virtual Office and Telework Arrangements, Email from Senator Kerry legislative aide: gas is $.10 of the I.R.S. reimbursement lxxxiii AARP as quoted by Kristina Gribovskaja, Runzheimer International, October 2007 2008 IRS deduction of $.55/mile includes $.10 for gas. lxxxiv lxiv Moen, Erickson, Argarwal, Fields, Todd,; 2000, The Cornell Retirement and Well- 2008 American Community Survey (U.S. Census). Lowest commute time was Being Study, Ithaca, NY: Bronfenbrenner Life Course Center at Cornell University. Lowton OK, highest was New York NY, average is based on all commuters lxxxv lxv Bureau of Labor Statistics 2009 WorldatWork Telework Trendlines; reinforced by adoption rate among Sun lxvi AccessibleSociety.org, Economics and People With Disabilities Microsystems program participants (79%) and 2007 CDW-G Telework Report (79% lxvii U.S. Bureau of Labor Statistics federal, 63% private sector). lxxxvi lxviii Source: U.S. Bureau of Labor Statistics, Monthly Labor Review, November 2007 How Employers and Workers Can Strike a Balance, University of Connecticut and lxix The Impact of Commuting on Employees, BusinessWeek Research and Transit Cen- Rutgers University, Center for Survey Research and Analysis and John J. Heldrich Center ter, February 2008 for Workforce Development; Work and Family. 1999 lxxxvii lxx The Telework Coalition (Telcoa.org) Grzywacz and Casey, Workplace Flexibility Associated with Reduced Absences lxxi Bureau of Transportation Statistics (BTS) Omnibus Household Survey. Average and Improved Job Commitment, Wake Forest University School of Medicine, April 2008 lxxxviii commute is 15 miles each way CDW-G 2007 Telework Report lxxxix lxxii 2005 Reason Foundation — The Quiet Success: Telecommuting’s Impact on Trans- CDW-G 2007 Telework Report xc portation and Beyond. Telecommuters reduce their daily trips by 53 to 77% on The Reason Foundation, Building Roads to Reduce Traffic Congestion in America's telecommuting days. We use 70% because part-time teleworkers are more apt to hold and Cities: How Much and at What Cost? August 2006 xci combine errands for work days. A more conservative figure of 65% should be used in full 2007 Urban Mobility Report, Texas Transportation Institute at Texas A&M time scenerios. University. TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 22 of 23
  • 23. Workshifting Benefits: The Bottom Line xcii Ibid xciii Ibid xciv CDW-G 2007 Telework Report xcv A study of over 3,000 employees showed that those with flexible schedules were less likely to have health problems that affect their job performance. xcvi Oil-Price.net: of 2/21/2010 xcvii Energy Information Administration, Petroleum Supply Annual 2005, June 2006. xcviii U.S. Energy Information Administration xcix EPA Emission Facts: Average Annual Emissions and Fuel Consumption c Environmental impact estimates were made using the Environmental Defense Fund Paper Calculator. For more information visit http://www.papercalculator.org. ci Washington Post, January 29, 2010, US pledges 17% emissions reduction by 2020; U.S. Energy Information Administration: Inventory of Greenhouse Gas Emission and Sinks 1990-2007: Transportation sector for light cars and truck was 1085 (Tg CO2 Eq.) in 2005 cii Washington Post, January 29, 2010, US pledges 17% emissions reduction by 2020 This paper was prepared for Citrix Online ciii Broadband Services: Economic and Environmental Benefits, American Consumer Institute, 2007 civ © 2010, Telework Research Network / Aerodite, Inc. Traffic Safety Facts NHSTA, August 2008 cv Federal Highway Administration 2005 cvi Trafficsafety.org, Network of Employers for Traffic Safety – 10 Facts Employers Must Know, 2005 cvii Ibid cviii RoadRagers.com 2004 composite statistics When referencing this document please refer to: cix CommuteSolutions.org: 2006 state and local construction, improvement and repair, maintenance, and operations cx Hartgen and Fields, Building Roads to Reduce Traffic Congestion in America’s Cities, TeleworkResearchNetwork.com The Reason Foundation, August 2006 (Kate Lister & Tom Harnish, 2010) cxi Vermont Department of Public Services, Understanding Broadband Deployment in Vermont, based on data reported in Adelphia’s 2005 Annual Report. cxii cxiii 2007 Urban Mobility Report Workshifting Benefits: The Bottom Line U.S. Senate, Committee on Banking, Housing and Urban Affairs, Condition of our Nation’s Infrastructure: Local Perspectives from Mayors, June 2008 cxiv Hartgen and Fields, Building Roads to Reduce Traffic Congestion in America’s Cit- ies, The Reason Foundation, August 2006 TeleworkResearchNetwork.com / Kate Lister / May 2010 / Page 23 of 23