Snippets from global research

Every organisation's experience of telework will be different. Each initiative is set up to meet different objectives, within different enterprises. The following list is a brief summary of examples that have been collected over a number of years:

Product Demonstration for a Green Working Day
Between August 2008 and June 2009, over 600 Telstra staff took part in six events that measured how Telstra’s products and services impact on productivity and the environment. These events were called “Produce Experience for a Green Working Day”. The events targeted Telstra staff who had Remote Network Access (RNA), an appropriate home (or remote) office set up, and approval from their manager to take part. Staff completed a survey at the end of each event to measure the productivity and environmental benefits.
Main findings include:
• 86% of staff experienced minimal or no technical issues;
• 32,583 km of travel was avoided;
• Average teleworker travels 52 km to and from work each day;
• Average teleworker spends 84 minutes travelling to and from work;
• Participants who drove cars covered more than twice the distance of other modes; and
• A total of 5.1 tonnes carbon dioxide equivalent (CO2e) from commuting was avoided from five days of teleworking across Telstra

Productivity gains:

• The City of Los Angeles found productivity among its teleworkers was 12.5 per cent higher than for other employees.
• Blue Cross/Blue Shield and Travellers Insurance have reported 20 per cent increases in productivity among their teleworkers.
• J C Penny documented a 25 per cent increase in productivity among its teleworking catalogue order processing staff.
• The City of San Diego measured a 34-40 per cent increase in productivity among participating workers.
• Storagetech in Boulder, Colorado, reported a 144 per cent increase in productivity.
• Hewlett-Packard reported a 20 per cent productivity increase among its teleworking call centre staff.

Unisys in New Zealand gained net benefits of NZ$12 412 per teleworker, per annum through its telecentre-based telework initiative in Wellington.

Dupont surveyed 6000 staff and found that 25 per cent of males and 45 per cent of females were prepared to consider leaving the company if they could gain more flexible working conditions elsewhere.

Autoliv Australia's chief executive Robert Franklin says he began introducing changes to work arrangements seven years ago. It now costs Autoliv $100 000 per year to provide flexible work hours, but reduced staff turnover has saved the company about $3.6 million.

Aetna Health in the United States estimated that US$6 million could be saved in one year with only 5 per cent of its staff teleworking.

In the Smart Valley Telework Pilot, the direct costs of setting up the initiative (per individual) were US$10 320, including $5000 for a new computer and furnishings. But the benefits were $16 000 in the first year, counting only increased output and reduced space costs. This amounted to a net benefit of $5680 in the first year—and in the second year they didn’t have to buy the computer.

Rank Xerox (UK) reported a 60 per cent increase in productivity from teleworkers.

At Pacific Bell (United States) 400 sales staff were set up to telework (with state of the art equipment) at a cost of US$1.5 million. The return on investment was very quick and there was an additional saving of $400 000 in office space, according to HR Magazine.

Within American Express employees gained 40 hours per month. Staff turnover was reduced and an annual overhead saving of around US$2800 per agent was gained. The American Express project was unique in that a major media campaign was conducted by the company to announce the project and its results. The reasons for the campaign were to underline the company's `most preferred employer' status in some of its regional centres; to play to the company's strengths in computing and telecommunications when it comes to the competitive travel agent market; and `just good publicity'.

Dow Chemical reported a reduction in administrative costs by 50 per cent annually and productivity increased by 32 per cent by adopting telework.

The British Training Standards Advisory Service has had non-computing staff working from home since 1987. Inspectors work from home, with their reports sent to the central office. The Service claims savings in rentals and travel costs of around US$750 000 per annum.

Communications giant Nortel Networks is a leader when it comes to telework. “It's all about becoming comfortable with a new way to work and manage. Telework is no different than managing an employee in Richardson, Texas from Raleigh, North Carolina,” says Mary McClintock, Manager, Teleworking Solutions at Nortel Networks. Nortel, based in Ontario, Canada, began its telework program in 1994. Using its own telecom equipment and in-house consultants, the company tested and perfected its work-at-home program. Now, with nearly 15 000 employees teleworking, the company is reaping the rewards. Results include improved employee satisfaction and increased work-life balance. Bottom line: Nortel saves US$20 million a year in real estate costs.

In AT&T a Virtual Office project involved moving sales representatives home. It saved US$8000 per employee, per year. AT&T also experimented with splitting fixed and overhead costs and redefining floor space as a profit centre. In one division, one workspace supports eight workers (an 800 per cent productivity gain). Other benefits included more customer time, more sales and more commissions. The policy building process was viewed as a transforming process in itself.

There's no shortage of reasons for AT&T to continue its telework program. It has helped the company slash its annual real estate costs by $30 million and increase their profit by $150 million, largely as a result of extra hours of productive work from teleworkers. Recent research shows AT&T teleworkers are much less likely to leave than in-office staff. "Turnover in our virtual office population is half that of the turnover in our general salaried employee population", according to Joseph Roitz, AT&T's telework director. Since Roitz took over in 2000, the number of virtual office workers at AT&T has tripled and the annual business benefit has grown to more than $180 million.

A 1992 pilot in Southern New England Telephone began with 100 management employees. Among the results:

• 76 per cent believed they were more productive and 51 per cent said that quality improved;
• 80 per cent of telework managers were willing to increase number of teleworkers reporting to them;
• 80 per cent of peers of teleworkers said morale was up;
• 51 per cent of teleworkers said they worked more hours while 78 per cent completed more work due to teleworking;
• 76 per cent of telework managers said they felt less stress;
• 40 per cent said staff were more motivated and 59 per cent said morale was up;
• 33 per cent of teleworkers said the pilot led to closer family ties; and
• teleworkers saved an average of 55 miles (88 kilometres) travel per week.

Digital saved £20 million a year, according to the Financial Times, as a result of introducing flexible working practices for 2500 of its 4000 staff over eight years to 1994.

J.D. Edwards & Company, a Denver-based software development firm, recognised that telework was a highly successful diversity retention tool. To attract and retain a diverse workforce, the company developed telework options for employees with disabilities, mature workers and parents who needed to stay at home. As a result, J.D. Edwards reduced turnover and saved replacement expenses, which the company estimates to be about 2.5 times a person's annual salary. The company also found that productivity rates among teleworkers were 20-25 per cent higher than among other staff. "We wanted to introduce a uniform, structured program to enhance recruiting and retention efforts and help employees obtain work life balance," says Wanda Brackins, manager, work/life innovations and diversity.

The Institute for Corporate Productivity (i4cp) reports that according to results of a 2009 study, "a full 84% of companies overall believe that flexible work arrangements in their organization boosts employee morale. That figure is up from 76% in a similar 2008 study conducted by i4cp. Correspondingly, the 2009 study showed that 78% of polled companies say flexwork options bolster retention rates, up from 64% the previous year."

A 2008 report from Corporate Voices for Working Families notes that in their 2007 survey of senior-level executives at large corporations: "Respondents reported an overwhelmingly positive experience with flexible work strategies;" 
"More then 75 percent of the business executives interviewed define flexible work strategies as an alternate time or location arrangement; for instance, a nonstandard 40-hour workweek or working from home;" and 
"The respondents, by a ratio of 9-to-1, report that flexible work strategies have a positive effect on helping organizations reach business goals

In a 2009 letter of recommendations submitted to the Senate Staff Working Group on Workplace Flexibility, Corporate Voices cites, "Our 50 partner companies [including Booz Allen Hamilton, HP, and KPMG LLP] understand that flexible work arrangements, for both salaried and hourly employees, contribute to more productive work environments, increased employee loyalty, reduced stress, and as a result, increased profitability and global competitiveness."

IBM has seen a dramatic savings due to its support of telecommuting. As of October 2007, according to a FinancialWeek article of that month, 40% of IBM's 355,000 employees are mobile workers. The magazine reports, "The company estimates that its mobile workforce reduces its real estate requirements by at least 2 million square feet, saving IBM about $100 million a year."

Families and Work Institute (FWI) reports in their study The Impact of the Recession on Employers, "fully 81% of employers have maintained existing flexible work options during the recession and 13% have actually increased those options, while 6% have reduced them.

Even Michelle Obama is a believer in workshifting: Speaking at a Corporate Voices conference in May 2009, Obama stressed that her own personal experiences support Corporate Voices' research. The Washington Post reported that Obama said, "I found that as I've managed staff, the more flexibility and opportunities that I gave them to be good parents, the more commitment that they made to working with me, the less likely they were to leave because they wouldn't find the same sort of situation somewhere else." She added, "So this isn't just about family balance. This is about making work places stronger and more effective, and keeping and attracting the most qualified people."