If only we could rise on a weekday morning without having to put on our work clothes, start a cranky car, fight our way through smoggy traffic, pay for expensive parking stalls, then do it all over again at the end of the day. Think of how we could minimize our footprint on the environment, save ourselves money on clothes, gas, and parking, and save our companies the cost of expensive office space.   

That seems to be the common wisdom when people talk about telecommuting or telework – synonyms for the use of Internet and communications technologies to work outside the traditional office or workplace, usually at home. MSNBC.com calls it “the quiet revolution” and predicts that by 2009, 27.5% of U.S. workers won’t be driving to the office.

Governments in Canada and elsewhere are starting to take telework seriously. The Environmental Quality branch of BC’s Ministry of Environment makes this recommendation: “Consider a condensed work week or telecommuting as a way to work effectively and cut air pollution.” For many disabled employees it can also present a way to be an active member the workforce without having to undertake the challenges of commuting or office access and facilities.

According to the 2008-2009 WorldatWork Salary Budget Survey of total rewards programs used to attract and retain talent (www.worldatwork.org), telework has shown the most substantial 12-month increase in both Canada and the U.S.  Although telework in the U.S. had a significant increase – from 30% in 2007 to 42% this year – the increase in Canada was even more dramatic, rising from 25% in 2007 to 40% this year.  

“It’s been a perfect storm,” says Anne C. Ruddy, CCP, president of WorldatWork. “Rising gas prices, leading-edge technology, and the push for work-life flexibility have all come together in the past 12 months to create a pretty dramatic increase in telework across the U.S. and Canada.”

BC’s TELUS Corporation found that teleworking can increase employee productivity by about 20%. The company conducted a 2006 pilot project where the company allowed 170 employees to work at home, and not only did it increase productivity and morale, but it also saved 114 tonnes in greenhouse gases and almost 14,000 hours of time in traffic.

Yet even though more organizations in Canada and the U.S. are beginning to implement telework options or at least develop telework policies, and many employees and unions are embracing the opportunity, some employers — and even their employees – are still reluctant.

In an article in Ontario’s Business Edge magazine (www.businessedge.ca/), writer Sharon Adams says “Old-line thinking – better suited to the industrial revolution – is holding us back from the full benefits of telecommuting.”  She quotes Bob Fortier, president of the Canadian Telework Association (himself a virtual worker) who found that “There are a lot of managers who say, ‘Not on my watch.’ “

Technology such as Web-based applications, video conferencing, webcams, instant messaging, and VoIP/telephony can enable virtual workers to work from homebase much more efficiently and accountably. Organizations also have to consider other issues, though. In the Sept 3 issue of ITBusiness.ca, employers are advised to ask themselves these six questions before implementing a telework program:

1. Is full-time telecommuting a smart decision?
2. How will you define and measure performance?
3. Will creativity suffer?
4. How will telework affect collaboration?
5. What about employees “left behind” in the office?
6. Do you have an exit strategy? (i.e. if you decide to discontinue the telework option)

Here are some of the tangible benefits and potential pitfalls of telework programs — from the perspectives of employers and employees – along with recent research that has been done on this hot topic.

Telework is a great recruiting and engagement incentive.

As we noted earlier in this article from the WorldatWork survey, telework is on the rise as an incentive to attract and retain talent. Both young workers entering the workforce as well as workers closer to retirement also have an interest in the flexibility of at-home work options. And for younger workers, there is no clear line between their work-life and personal life, so it feels natural and comfortable for them to them to work from home. 

Telework offers meaningful lifestyle options so employees can have a better work/life balance. This can improve employee morale and reduce stress, with the end result of a more satisfied, stable and productive workforce. EKOS Research found that 33% of Canadians would choose telework over a salary raise, while 43% would actually quit their job to work somewhere that allows telework. 

On the other hand, older or more established workers, who haven’t experienced telecommuting and are used to being in the office, may have some reluctance, especially at mid-career. A recent U.S. survey of 700 white-collar workers reported that almost two-thirds of all the respondents expressed fear that working from home “will hinder their chances at a promotion due to the lack of contact with the employer.” About 71% said they believed their manager wants them around to prevent a decline in productivity, while another 62% said they think their employer needs them in the office to prevent communication issues.

Telework can net huge savings on the high cost of office space.

Not only can home-based employees help organizations reduce the costs of office overhead, include leases costs, taxes, energy costs, and equipment and supply costs, they can also help solve the ever-present urban issue of available office space (especially in places such as downtown Victoria). Through telework, AT & T reported saving $500 million in office costs since 1995, and IBM reduced the need for office space for a savings of $56 million per year.   

Telework can help improve the efficiency, performance and productivity of your employees.

As many organizations become more reliant on information technology for their operations and communications, teleworking can actually help companies get a better return on investment from their workplace technology. American Express reported that their teleworkers handled 26% more calls and produced 43% more business than their office-based counterparts. At IBM Canada, where 20% of the workforce teleworks, studies showed that teleworking employees were as much as 50% more productive.

However, trust – on the part of employers – remains the looming shadow behind the sunshine of telework. Production-focused workers whose output can be quantified electronically are less concern than workers whose productivity is often measured by their managers in terms of what they’re seen to be doing in the office. A series of Dilbert comic strips chronicled Dilbert’s brief telecommuting experience as he descends into comical non-productivity. It’s exactly what most employers fear, but employers who take the risk often find that the main change is the need to manage more diligently. 

“You’re trusting people to do the work,” said Steve Lundin of BigFrontier Communications group, quoted in the Sept 7 issue of the San Francisco Chronicle. . “There is some fluff time you’re paying for, but what you bill out for is far more than what you’re paying them.” Lundin added that one downside to telecommuting is the “additional management of people,” and said he has to spend more of his time speaking to his telecommuters over the phone.

Teleworking employees may also find that their collaboration and creativity in certain jobs or roles may be impacted because their physical isolation keeps them from the stimulating personal interaction they would normally have in informal or formal groups, pods and meetings. Employers can remedy this by ensuring teleworkers have opportunities to meet face-to-face regularly, and this may even reduce the number of unnecessary or unproductive meetings that are called just because workers are onsite.   

The Green Commute - telework options can show your corporate commitment to the environment.  

Your organization can improve its “green” image and show its commitment to the community by helping reduce vehicle emissions as well as saving energy and energy costs by reducing gas consumption. This can be demonstrated in hard numbers on an annual report, too. A U.S. article in the Sept 5 issue of the Hartford Courant reports that an employee with a 45-minute commute could cut his or her monthly gas expenses by 40%, or about $80, if allowed to telecommute two days a week.

Organizations that operate across several time zones or want to expand to global markets can hire and deploy teleworkers in other countries with ease.

There’s also the issue of the costs and logistics of relocating staff to other regions or even other countries. Statistics Canada reports that it costs companies an average of $42,000 to relocate workers to another city. With telework, some workers can be allowed to remain in their own hometown while conducting work for a branch in another location. 

Telework can be a selective program offered to specific categories of workers without impacting the availability of employees that are needed on-site.

ITBusiness.ca points out that telework works best for task-oriented jobs (such as IT positions) that don’t require a lot of face-to-face interaction with others. In fact, this can even help improve productivity for these types of employees who can work in a private environment without any non-work-related distractions. Call centres are increasingly using telework as a way to save costs and allow employees to handle calls routed to their homes where they can use online databases and tools to help customers resolve issues. In fact, this can even help organizations increase the number of number of customer service hours available to the public as teleworkers can work longer, later, or staggered hours at home and not have to worry about transportation or even personal safety issues. This can, however, lead to a problem with a “digital divide” separating those left behind in the office and those who are teleworking.

Telework can help reduce overtime for office staff and may even help reduce absenteeism.

When it comes to minor illnesses or health issues that might normally keep workers absent and unproductive, telework offers some employees (in some cases) the option to work from the comfort of their own home when they have minor health problems without the physical stress of having to be in the office. Less travel time also may mean less overtime costs. Absenteeism averages about 8 days a year (6.9 days for men, and 9.2 days for women) says a study Statistics Canada, and Health Canada has reported that the cost of balancing work and family is about $2.7 billion.

Canadian organizations that telework.
Source: Canadian Telework Association 

This article was originally published in Douglas Magazine. Garth A. Buchholz is the President and Chief Usability Analyst at DigitalPractices Media Inc.