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MINNESOTA TELEPHONE ASSOCIATION Telecommunications Guide August 2000
Higher Gas Prices: Are they the 'last
straw'? Call it telecommuting or telework, but the technology for employees to perform their work from home is available now in metro and rural Minnesota and its use is growing. Some major corporations have already discovered the money-saving aspects of "telework" programs and are finding that most telecommuting employees are more productive and - crucial in today's world - sticking with the company. That's why D. Bryce Hallowell, a spokesperson for Qwest Communications (formerly US West), can confidently say, "telework is becoming the reality of the promise." Something that could advance this new reality - higher gasoline prices - has been mitigated somewhat recently by more production from OPEC and lower numbers at the pump, but commuting is still much more expensive than it was even a year ago, especially if you drive a gas-hungry SUV. So for some people, higher gas prices may just be the "last straw" on the proverbial camel's back. It might lead them to ask their employer to let them telecommute - or push them into looking for a company that will accommodate their desire. As Hallowell puts it, "If people can save $15 or more on gas a week by working at home, not to mention the hours of commuting time they save, a lot more people may be interested in telework as an option." Numerous Factors Driving the Trend Although higher gas prices may contribute to the telecommuting phenomenon, but they're not the most important factor. Employers see telecommuting as another way to hang onto good employees, people who often have other work options and who are very expensive to replace these days. Plus surveys show that many at-home workers, freed from office distractions and long commutes on clogged highways, are often more productive than their office-bound counterparts. And that doesn't take into account the costly expense of heating, lighting, furnishing and cleaning office space that's mostly empty outside the normal workweek schedule. For employees, the appeal of telecommuting is bypassing the whole traffic hassle or taking advantage of a more flexible schedule to attend to childcare or any of the myriad things that sometimes need to get done during the day. (Working in your pajamas? That's just a little extra perk, one that will probably go away when videophones arrive.) None of the factors above, by the way, take into account the environmental costs we all pay so that all those vehicles can maneuver the roads on weekday commutes. Whether today's pricier auto fuel ends up being a key factor in telecommuting or just a blip on our personal radar screens, it provides a perfect chance to examine what's behind the move by businesses to office more employees at home using the Internet and other high-tech telecommunications tools. Technology Advances & Tight Labor Drive the Trend Telecommuting's growth is primarily due to technological advances that make working at home more and more feasible and by the tight labor market that shows no signs of going away any time soon. Telecommuting is benefiting from today's rapidly changing, more affordable and easier to use technology. But you have to attract and retain productive employees to use the technology. That's why, Hallowell says, "Companies are bending over backward to do what they can to keep good employees." Employers are paying attention to teleworking because they see it as a real benefit for their employees. In a recent survey done by the former U S WEST, "Seventy-three percent of companies surveyed believe telework helps retain employees," said Hallowell. It also helps companies. Employee turnover can total up to 150 percent of someone's annual salary when you add up the price of headhunting, hiring, training, bonuses, lost productivity and more. The loss of knowledge and experience may be of even greater value. And it's all exaggerated in today's "free-agent employees' market." Cutting turnover even 1 or 2 percent can save a large company millions. Bruce Karpenko, a veteran software engineer for Unisys, exemplifies how far telecommuting can go. He works for the company's Roseville office - from his grandfather's farmstead near Halstad in northwestern Minnesota. He's been doing it since 1998 because an ISDN connection that gives him a faster digital signal over regular copper phone lines was installed by Halstad Telephone Company. Through this connection, Karpenko accesses the Internet and his employer's Intranet via his local telephone company. Even though he still drives to the Twin Cities once a month, he finds his visits are now largely for personal pleasure. "I thought the company might be upset when I said I didn't really have to visit the office for business reasons," says Karpenko, "but they thought that was a positive because it showed that the whole process worked." The process also works for company employees who may telecommute from Seattle or who can work at home without having to drag health-saving oxygen tanks to the office. Other Savings and Increased Productivity Employers also can see substantial savings on real estate and technology equipment costs using telecommuters. Author Jack Niles estimates that companies save $6,000 to $12,000 annually in real estate costs on each employee that works at home one or two days a week. IBM lopped $75 million off its real estate bill by moving 50,000 employees into telework. Companies can also quickly recoup investments in telecommuting technology today by using the Internet, which allows them to maintain smaller private networks. As for productivity, Qwest survey respondents reported that 31 percent of telecommuters were more productive than non-teleworkers, while only 7 percent were less so. A survey by industry group ITAC found telecommuting productivity increases in the 22-71 percent range. And, employees perform in a safe, comfortable, familiar environment where they can concentrate better and work when they're at their best. As Karpenko affirms, when he worked at company headquarters, he says he felt obligated to stay in his office for a normal "shift" even when he wasn't particularly productive. Now, he can do chores or run errands when he runs into a problem, then attack it with a clearer mind later. "I have fewer interruptions now and I probably work more than I did before," he says. Another benefit of telework is improved customer service. Companies with round-the-clock customer service needs are more likely to find and keep late-night employees who can work at home with no worries about their safety. And colleagues anywhere on the planet can get the quick responses they need to compete successfully in today's increasingly never-closed-for-business world. And, finally, there's one other telecommuting advantage we should all be happy about - tele-medicine. Without it, a hospital's on-call radiologist has to drive in to read an X-ray or CT-scan before a diagnosis is made. When a radiologist can do this at home, the time saved could be lifesaving.
Thinking about offering a telework program? Ask these questions first. A telecommuting program is a complex undertaking that requires input from many sources and a lot of planning. Here are 10 questions every company should ask - and answer - before starting a program: 1. Why are we starting a program? Most businesses want to attract or retain good employees, improve customer service, cut office space costs, etc. Whatever the reason, answering this question at the beginning helps you know if your program is succeeding. 2. Who should be involved? Any department affected, including but certainly not limited to HR, IT, legal, facilities management. 3. Who can telecommute? If you know why you want a program, you'll have a pretty good idea who is eligible to work at home. But you'll still need to set criteria (time with the company, qualified job titles, which departments, special home situation, etc.). 4. What policies do we need to establish or change? Companies need to know who (company or employee) pays for what and when/how often employees need to be in the office or need to check in. There are insurance, liability and other issues, too. Making ground rules at the start makes it easier to take advantage of opportunities later. 5. How will we conduct business? You need to decide about things like mail and meetings so the left and right hands know what each is doing. 6. What technology will we use? Laptop or desktop? ISDN or DSL? Multiple phone lines? Cell phone? Pager? Organizer? How will updates and new equipment be handled? 7. Can IT provide the necessary support? Will there be more calls for help than IT can handle? What about on-site visits to set employees up and fix problems? 8. How will we deal with telecommuting workers? Telecommuters will be on their own a lot, often splitting time in the "two worlds" of home and office. What support will they need to stay and feel connected to people and the company? Who can advise them about how best to use their time in each location, about avoiding such pitfalls as adopting an overly irregular schedule or making a major lifestyle change? 9. How will we know if the program works? By setting up criteria in advance and getting feedback from all involved parties. Are you solving the problem(s) that led you to set up the program, seeing the results you hoped for? 10. Where do we get help? Vendors, public agencies and non-profits are sources. And be sure to make one call - to your local phone company. Questions adapted from "Telework 101: Getting Started", www.uswest.com
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