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:

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.