Telecommuting / Telework Saving Money and

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Telecommuting / TeleworkSaving Money
and..
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Telecommuting / Telework

• What is telecommuting?
• A short definition of telecommuting
  Telecommuting, often referred to as telework,
  occurs where paid workers work away from their
  normal place of work, usually from home.
• Organizations that have the greatest success with
  telework tend to integrate telework so that it
  fits within their existing legal, financial,
  administrative, human resources etc.
  infrastructure.
• Telework can save millions while helping to
  balance busy lifestyles, while reducing job
  related stress.

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Telecommuting / Telework

• Telework organizations take full advantage of new
  technologies and new ways of working to focus on
  the work performed rather than on the location
  where it is performed.
• They discover first hand how it increases
  productivity while reducing accommodation costs,
  layoffs and absenteeism.
• As the information revolution reshapes our
  corporate and personal lives, moving us closer to
  a global society, telework also represents a
  major step towards working anywhere, anytime.

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Telecommuting / Telework

• Productivity Increases when Employees Telework
• Telework helps Recruit and Retain Employees
• Job Satisfaction Increases for Teleworking
  Employees
• Telework Saves Commuting Time
• Savings from Absenteeism
• Gains from Increased Productivity
• Gains from Increased Employee Retention
• The Incidence of Telework Continues to Rise

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Telecommuting / Telework

• Productivity Increases when Employees Telework
• When working at home, 47 of teleworkers reported
  that they are more productive than when they work
  at their conventional location.
• 42 of teleworkers said their productivity is not
  impacted by working at home.
• Only 10 of teleworkers reported that their
  productivity is reduced by working at home,
  reflecting in part the need to spend occasional
  time dealing with personal or household needs, as
  highlighted earlier.

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Telecommuting / Telework

• Telework helps Recruit and Retain Employees
• Telework is a proven employee retention tool,
  especially during the current full employment
  economy.
• 53 surveyed said it would be important or
  extremely important to have the ability to work
  at home some of the time.
• Only 14 of teleworkers indicated that the
  ability to work at home was not at all
  important to their employment consideration.
• 26 of employed workers surveyed who do not
  currently telework indicated they had jobs that
  would allow them to work at home, totaling 23
  million workers.
• 60 of those who had work tasks that could be
  done from home were interested in teleworking.

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Telecommuting / Telework

• Job Satisfaction Increases for Teleworking
  Employees
• 55 of teleworkers indicated they are more
  satisfied with their jobs after starting to work
  at home than they were before, while 33 said
  working at home had no impact on job
  satisfaction.
• Only 7 of teleworkers said they were less
  satisfied with their jobs after beginning to work
  from home.

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Telecommuting / Telework

• Telework Saves Commuting Time
• 87 of teleworkers drive to and from work alone,
  reflecting the typical American commuting
  pattern.
• Only 7 of teleworkers said they were less
  satisfied with their jobs after beginning to work
  from home.
• By working at home, teleworkers save 52.9 minutes
  each workday, or, in effect, one hour per day.
  This is the equivalent of 6 days/year, assuming
  one day of work-at-home per week, less two weeks
  vacation time.
• Annually, telecommuting decreases round trip
  commuting by roughly 1,800 miles per year per
  teleworker, representing a significant cost
  savings for individual telecommuters.

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Telecommuting / Telework

• Savings from Absenteeism
• Without teleworking, absenteeism would cost
  3,313 per year per employee, assuming each
  employee takes one full day at their current
  salary/wage rate for days on which they need to
  manage needs associated with absenteeism.
• With teleworking, employees surveyed were able to
  be absent at an equivalent rate of only 1,227
  per year.
• Employers of teleworkers thus gain an average of
  2,086 per teleworking employee per year saved
  from the amount of time those teleworkers would
  otherwise be absent, or 63 of the typical annual
  salary/wage cost of absenteeism for those
  teleworkers if they were not able to work from
  home.
• Teleworkers surveyed reported 44,000 average
  annual income, as previously noted, which is
  equivalent to 169/day based on working 261
  days/year.

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Telecommuting / Telework

• Gains from Increased Productivity
• The average productivity increase reported by
  telecommuters is 22 per day worked at home.
  Using the estimate of 169 in daily salary/wages
  per teleworker, 22 represents a 37 gain in
  value per teleworker per day for organizations
  that facilitate telework. Annualized, this equals
  1,850 in productivity gains for 50 days of
  telework, or if employees worked 150 days at
  home, 5,550 per year.
• Prorated for just those 47 of teleworkers who
  reported productivity gains less the 10 who said
  their productivity decreased (42 saw no change),
  the net daily benefit is 685 per teleworker who
  averages just one day per week at home or 13
  billion for 19.6 million teleworkers.

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Telecommuting / Telework

• Gains from Increased Employee Retention
• For every teleworker who is retained, the
  employer avoids a cost of replacing that employee
  of 7,920 per teleworker.
• The estimate reflects an assumption that
  organizations spend, on average, one-third of an
  employees salary to recruit that employee. Based
  on survey findings, this equals 14,667, on
  average, per active teleworker.
• These estimates also reflect the finding that 54
  of teleworkers surveyed said that the ability to
  work at home was important or extremely important
  to them in considering a new job. Retention of
  just these teleworkers would amount to a cost
  avoidance of 7,920 per teleworker, prorated over
  all teleworkers.

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Telecommuting / Telework

• The Incidence of Telework Continues to Rise
• The estimate reflects an assumption that
  organizations spend, on average, one-third of an
  employees salary to recruit that employee. Based
  on survey findings, this equals 14,667, on
  average, per active teleworker.
• These estimates also reflect the finding that 54
  of teleworkers surveyed said that the ability to
  work at home was important or extremely important
  to them in considering a new job. Retention of
  just these teleworkers would amount to a cost
  avoidance of 7,920 per teleworker, prorated over
  all teleworkers, as indicated.

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Telecommuting / Telework

• The bottom line
• As Labor Secretary Alexis Herman recently put
  it,
• We need to rework the workplace so that there
  is room for family responsibilities and
  commitments as well as a strong work ethic.

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Telecommuting / Telework

• Dallas Morning News published an article
  announcing that employers can save more than
  10,000 annually for each worker telecommuting or
  working from home. The savings are attributable
  to lower turnover costs, reduced absenteeism, and
  increased productivity, according to a national
  study conducted by the International Telework
  Association Council.
• Meridian HomeOffice II - Extends the reach of the
  Meridian 1 digital PBX and the agency's WAN to
  the home for the remote knowledge worker or call
  center agent using the latest in Voice over IP
  technology.
• Remote Office - Extends the reach of the agency's
  WAN to a small office of up to 32 workers.
• PI Telecommuter - Allows casual telecommuters to
  extend their desktop to a remote site. Using a
  single dial-up connection, they can access their
  data services as well as have their office
  telephone follow them to a remote location.

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Telecommuting / Telework

• The i2004 Internet telephone connects directly to
  the LAN and has the look, feel and functionality
  of a traditional telephone. This allows agencies
  to capitalize on the economies of a simplified
  wiring system within the enterprise.
• And the M10 will allow agencies with significant
  investments in IP/Data networks to incrementally
  add Nortel's world-class telephony to their data
  networks
• Other Manufactures such as Cisco and Lucent also
  have specific products to address remote office
  and teleworking arrraingments.

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Meridian HomeOffice II
Has set a new teleworking standard in the industry
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iRemote 9110(foot stand) 9115(external)
One Technology Solution for multiple network
access options
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Remote Solutions - host side integration
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Teleworkers/Telecommuters (Anywhere Everywhere)
Increase recruiting options and minimize
relocation costs
Telecommuters who work from home several days per
week. Increase Productivity Reduce Office
Space Reduce Traffic/Pollution
Increased Employee Satisfaction Flexible
Schedule Family needs Lifestyle options
Create virtual teams where members are located
anywhere
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Telecommuting / Telework

• US Telework Scene - stats and facts
• Oct '99 Telecommute America research study. This
  study indicates that the number of American
  teleworkers jumped to 10 of U.S. adults in the
  last year. This growth chart should put the
  growth rate in perspective.
• Year No. of teleworkers
• Oct '97 11 million
• Oct '98 15.7 million
• Oct '99 19.6 million

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Telecommute / Telework

• Rural Emphasis Project
• More information at
• www.energy.wsu.edu/telework/