How Does Telecommuting: A Benefit Employers Would Offer
Telecommuting: A Benefit Employees Wish Employers would Offer
Patty Dykstra
ENG122
Holly Ledcke
February 17, 2014
Telecommuting originally began in 1972 and has continued in various forms for over forty years. Over time, it has become more acknowledged as a legitimate practice for cutting costs and increasing employee satisfaction. However, opponents bring up the points that there are work flow issues, lack of employee accountability and legal issues. This paper will review both the advantages and disadvantages showing why telecommuting should be considered by more employers.
US News and World Report published an article by Alison Green entitled 8 Benefits Employees Wish Employers Would Offer dated September 13, 2013. …show more content…
Making the list at number three was “being allowed to telecommute when the work allows it,” (Green, 2013). Companies that allow telecommuting go a long way toward earning employees’ loyalty. Making the list at number five was flexible schedules (Green, 2013). In reviewing the remaining items on the list, it is clear that employees want to work but they also want respect and some autonomy at the same time. Technology is also constantly developing and making it easier for employees to stay connected while working out of the office. “Working out of the office” may mean meetings with clients, inspections of equipment, property, or staff assessments. However, in most cases it refers to an employee who is telecommuting or working remotely from a site other than their assigned office – most often from their home. In an age where companies are looking for every possible place to cut expenses and still remain competitive; this is definitely an area that should be reviewed. It makes no sense to build a cubicle or an office for an employee who spends most of their time legitimately working outside the office. Telecommuting enables the employer to save at least $2,000 to $8,000 per employee by reduced costs of an office and other fixed overhead costs (Goodman, 2013). However, nothing in this world is ever completely good or bad and this topic is no exception. Legal vulnerabilities for the employer with the employee working in uncontrolled environments, problems with accountability of employees for the employer, and the potential for negative impact on the value of the company as a whole are just a few examples of the potential pitfalls. Other benefits and pitfalls to the employer and employee will be explored farther as we proceed.
The term “telecommuting” was first used in a business context in 1972 by Jack Nilles, who was later dubbed the “Father of Teleworking,” while he worked from home developing a communication system for NASA (Meier, 2013). Telecommuting is basically a work concept that liberates employees from time and space and in which work is an activity, not a place (Kurland & Egan, 1999). During the ensuing 41 years, telecommuting evolved into many forms that were often accepted by business professionals, employees, and researchers across the board.
According to Meier (2013), a brief review of the evolutionary timeline for telecommuting might look something like this:
Research has shown that on any given day 55% of employees are out of the office. Competition and the bottom line demand that office space be created only for staff that requires it on a daily basis (Goodman, 2013). The staff that only comes to the office periodically can utilize hotel cubicles or shared workspaces.
Telecommuting was once touted in the workplace as a potential benefit to employees to reduce the work-family balance conflict. Some studies have shown that telecommuting professional and managerial candidates who generally have more autonomy and control over their work schedules are more successful in the transition from being a traditional office worker to a telecommuter. Studies of telecommuting employees versus traditional office workers have shown challenges to the traditional office work flow organization. However, studies have also shown increases in productivity by the telecommuting employees, reduced absenteeism, and reduced employee overhead costs. “Although telecommuting is still relatively unusual in corporate America, the number of people working regularly from home rose more than sixty percent between 2005 and 2009, and, at some big companies, like Aetna, almost half the staff telecommutes. Another study estimated that a ten-per-cent increase in telecommuting could save a hundred billion dollars in lost time and expenses.” (Surowiecki, 2013)
After analyzing years of research, studies have reinforced conclusions of increases in productivity by the telecommuting employees, reduced absenteeism, and reduced employee overhead costs (Butler, Aasheim & Williams, 2007).
Research has shown that home based employees generally increased productivity by 13 percent over office based workers and staff attrition by half. This creates thousands of dollars in savings for the employers. Research has shown that telecommuting also reduces absenteeism, increases productivity, reduces attrition and saves the employer on average $8,000 per employee (Goodman, 2013). It is obviously easy to understand how increased productivity, savings or reducing attrition is not so black and white. Each time an employee has to be replaced there are a myriad of costs involved from recruiting and training to additional payroll taxes for new employees. Therefore, the ability to increase productivity and retain those same employees is a double win for the …show more content…
employer.
Who uses telecommuting? “Data from a February survey in Fortune magazine shows 85 of the 100 Best Companies to Work for with more than 1,000 employees nationally include telecommuting as a perk.” (Thompson, 2012) Employees granted this opportunity feel trusted and respected, which leads to less absenteeism and less attrition. Employees who feel a sense of two way trust are more likely to form a bond of loyalty with their employer and will perform at their optimal best. “Companies are offering telecommuting as a way to give employees more flexible schedules and in some cases make up for not offering bigger raises, but also to curb office space expenses,” (Thompson, 2012) As this seems to be a growing trend for the future, management needs to catch up with the tide. Such rapid growth can bring growing pains that have to be addressed. Nearly all companies that allow or offer telecommuting arrangements, have very informal policies or arrangements with their employees leaving the potential open for a myriad of misunderstanding, problems among staff, or legal vulnerabilities. Not beginning with a well-defined policy is almost always a mistake in any business operation and telecommuting is not any different. Management needs to identify which departments will be to operate with telecommuting staff, how will the office staff coordinate with those out of the office, or will telecommuters be more independent? Critical thinking and decision making at the beginning will likely lead to less problems during the launch of a telecommuting program. However, no policy in the history of business management has ever been created that addressed every issue from the start. Revisions will be made as new issues arise.
Legal vulnerabilities certainly exist for the employer with the employee working in uncontrolled environments. Companies should ensure that very specific guidelines are drafted for a policy covering telecommuting reporting expectations, guaranteed hours when the employee will be available, any restrictions that may apply, etc. to protect both parties. Policies should also cover what happens if a telecommuting employee is injured at home, applicability of employer’s insurance for telecommuters, and the responsibility for the equipment in the employees’ home.
Companies considering offering the option of telecommuting often have concerns with accountability of employees with the employer. In the age of technology, this may seem to be an old school management style concern, but it does still exist. While many studies report increased productivity among telecommuters, one must ask – is that due to the self-reporting of data or that the highest producers are generally the first employees chosen for telecommuting? Either one or both of these conditions could greatly skew the results of a study on productivity. Bottom line it is not possible to have direct supervision of telecommuters. Often times there are employees hired particularly to be in the office to inspire staff morale or brainstorming. If one of these employees was to suddenly leave the office to telecommute, the dynamics of the office would change substantially. However, most telecommuters do not work the majority of hours off site. In general the remote hours average six to eight hours per week.
In reviewing the latest research on telecommuting, you will find most of the research centers on how telecommuting affects the employees for the better or not. On occasion, the effect on the employer is discussed. “The fundamental point is that much of the value that gets created in a company comes from the ways in which workers teach and learn from each other. If telecommuters do less of that, the organization will be weaker.” (Surowiecki, 2013) Last year Marissa Mayer, CEO of Yahoo! took a bold step and banned telecommuting by all Yahoo! employees which was a shock to their corporate culture. She faced a mountain of criticism and many wondered if it would be too much for the shaky company and be its undoing. However, Mayer, who had been a stellar employee before her promotion to CEO, was taking a new stance that affected everyone – including her. Mayer felt strongly about face to face time to build connections, relationships and most of all trust within the virtual team. This is vital in a company that is not thriving. However, just because co-workers are getting face time and are likely in the same building during the work day does not guarantee more success than telecommuting. Recent articles about Yahoo! reveals customers with a lot of malcontent for the company’s products. This would leave a person to wonder if that same dissatisfaction translates back to the Yahoo! employees since the changes in how they are allowed to work.
Businesses that have implemented the practice of telecommuting have not always found it successful in reducing work-family stresses. Instead it has often resulted in a general expansion of work hours; workers’ needs for additional hours beyond the regular work week or the employers’ ability to intensify work demands among salaried employees. At least this is what the average employer would like everyone to think about telecommuting - it will end up being worse for the employee and they will request the traditional work schedule again. However such is not the case in all research findings.
Challenges also exist for management in dealing with the organizational work flow assignments. In cases where the telecommuters are working nearly independently, such as sales and marketing, this dynamic works well. However, when you have managerial or professional positions that must interact with support staff working in the office, it can become quite burdensome and may affect office morale. Additionally, people working from different locations on the same project must have excellent communication skills to avoid any errors on the project. Although it is managers and professionals that are most likely to be in a telecommuting situation, and this category of employees are most likely to be the most productive already, it was found by researchers to be a sustainable increase in productivity over time.
Telecommuting is not yet common in the workplace for a number of reasons. Businesses found instead it has resulted in a general expansion of work hours; workers’ needs for additional hours beyond the regular work week or the employers’ ability to intensify work demands among salaried employees. Increased autonomy for the employee, reduced costs and increased productivity from the employee. However, research has shown when properly structured, telecommuting does work for the benefit of both employee and employer.
This paper has addressed a number of topics that are required to be reviewed to have a successful telecommuting program. The company must have a well-defined policy and work flow assignments, the proper technology must be in place and available to prepare work assignments and communicate with the office regularly. There has also been discussion on the effect of telecommuting on the employee, co-workers and the employer. The final point to be addressed is the type of employee suited for telecommuting, as not everyone is suited for it. U S News & World Report published an article by Robin Madell on August 12, 2013 entitled “Do You Have What It takes to Work From Home?” In the article she listed the five top traits that can make or break flexible work arrangements: self-discipline, confidence, resourcefulness, comfort with self-imposed deadlines, ability to stay visible. The last skill an employee absolutely must possess is the ability to STOP working and avoid the endless workday that leads to burnout.
Having reviewed a voluminous amount of research studies on the topic, some of which referred back to each other, telecommuting is definitely a sustainable option for companies to utilize for improving employee morale and saving money within the company. The implementation must be done carefully with very specific policies to address potential legal vulnerabilities as well as avoid misunderstandings or unmet expectations. In addition staff must be carefully chosen to participate and everyone on staff that will integrate with the program must be informed about the work flow processes to avoid any angst as much as possible between co-workers. Businesses should consider telecommuting as part of the new business operations model for the future.
References
Butler, E., Aasheim, C., Williams, S.
(2007). Does Telecommuting Improve Productivity? Communications of the ACM. Retrieved January 17, 2013 from the Ashford Library
Goodman, E. (2013) Telecommuting: Is it right for you and your business? Journal of Property Management. Retrieved January 17, 2013 from the Ashford Library
Green, A. (2013) 8 Benefits Employees Wish Employers Would Offer. US News & World Report. Retrieved from http://money.usnews.com/money/blogs
Kurland, N. and Egan, T. (1999). Telecommuting: Justice and Control in the Virtual Organization. Institute for Operations Research and the Management Sciences. Retrieved January 17, 2013 from the Ashford Library
Madell, R. (2013). Do You Have What It Takes to Work From Home? US News & World Report. Retrieved from http://money.usnews.com/money/blogs
Meier, A. (2013). The Liquid planner Blog. Retrieved from http://cdn.liquidplanner.com
Surowiecki, J (2013). Face Time. The New Yorker. Retrieved from http://www.newyorker.com/talk/financial/2013
Thompson, K. (2012) Working through Telecommuting. Phi Kappa Phi Forum. Retrieved January 17, 2013 from the Ashford
Library
Patty Dykstra
ENG122
Holly Ledcke
February 17, 2014
Telecommuting originally began in 1972 and has continued in various forms for over forty years. Over time, it has become more acknowledged as a legitimate practice for cutting costs and increasing employee satisfaction. However, opponents bring up the points that there are work flow issues, lack of employee accountability and legal issues. This paper will review both the advantages and disadvantages showing why telecommuting should be considered by more employers.
US News and World Report published an article by Alison Green entitled 8 Benefits Employees Wish Employers Would Offer dated September 13, 2013. …show more content…
Making the list at number three was “being allowed to telecommute when the work allows it,” (Green, 2013). Companies that allow telecommuting go a long way toward earning employees’ loyalty. Making the list at number five was flexible schedules (Green, 2013). In reviewing the remaining items on the list, it is clear that employees want to work but they also want respect and some autonomy at the same time. Technology is also constantly developing and making it easier for employees to stay connected while working out of the office. “Working out of the office” may mean meetings with clients, inspections of equipment, property, or staff assessments. However, in most cases it refers to an employee who is telecommuting or working remotely from a site other than their assigned office – most often from their home. In an age where companies are looking for every possible place to cut expenses and still remain competitive; this is definitely an area that should be reviewed. It makes no sense to build a cubicle or an office for an employee who spends most of their time legitimately working outside the office. Telecommuting enables the employer to save at least $2,000 to $8,000 per employee by reduced costs of an office and other fixed overhead costs (Goodman, 2013). However, nothing in this world is ever completely good or bad and this topic is no exception. Legal vulnerabilities for the employer with the employee working in uncontrolled environments, problems with accountability of employees for the employer, and the potential for negative impact on the value of the company as a whole are just a few examples of the potential pitfalls. Other benefits and pitfalls to the employer and employee will be explored farther as we proceed.
The term “telecommuting” was first used in a business context in 1972 by Jack Nilles, who was later dubbed the “Father of Teleworking,” while he worked from home developing a communication system for NASA (Meier, 2013). Telecommuting is basically a work concept that liberates employees from time and space and in which work is an activity, not a place (Kurland & Egan, 1999). During the ensuing 41 years, telecommuting evolved into many forms that were often accepted by business professionals, employees, and researchers across the board.
According to Meier (2013), a brief review of the evolutionary timeline for telecommuting might look something like this:
Research has shown that on any given day 55% of employees are out of the office. Competition and the bottom line demand that office space be created only for staff that requires it on a daily basis (Goodman, 2013). The staff that only comes to the office periodically can utilize hotel cubicles or shared workspaces.
Telecommuting was once touted in the workplace as a potential benefit to employees to reduce the work-family balance conflict. Some studies have shown that telecommuting professional and managerial candidates who generally have more autonomy and control over their work schedules are more successful in the transition from being a traditional office worker to a telecommuter. Studies of telecommuting employees versus traditional office workers have shown challenges to the traditional office work flow organization. However, studies have also shown increases in productivity by the telecommuting employees, reduced absenteeism, and reduced employee overhead costs. “Although telecommuting is still relatively unusual in corporate America, the number of people working regularly from home rose more than sixty percent between 2005 and 2009, and, at some big companies, like Aetna, almost half the staff telecommutes. Another study estimated that a ten-per-cent increase in telecommuting could save a hundred billion dollars in lost time and expenses.” (Surowiecki, 2013)
After analyzing years of research, studies have reinforced conclusions of increases in productivity by the telecommuting employees, reduced absenteeism, and reduced employee overhead costs (Butler, Aasheim & Williams, 2007).
Research has shown that home based employees generally increased productivity by 13 percent over office based workers and staff attrition by half. This creates thousands of dollars in savings for the employers. Research has shown that telecommuting also reduces absenteeism, increases productivity, reduces attrition and saves the employer on average $8,000 per employee (Goodman, 2013). It is obviously easy to understand how increased productivity, savings or reducing attrition is not so black and white. Each time an employee has to be replaced there are a myriad of costs involved from recruiting and training to additional payroll taxes for new employees. Therefore, the ability to increase productivity and retain those same employees is a double win for the …show more content…
employer.
Who uses telecommuting? “Data from a February survey in Fortune magazine shows 85 of the 100 Best Companies to Work for with more than 1,000 employees nationally include telecommuting as a perk.” (Thompson, 2012) Employees granted this opportunity feel trusted and respected, which leads to less absenteeism and less attrition. Employees who feel a sense of two way trust are more likely to form a bond of loyalty with their employer and will perform at their optimal best. “Companies are offering telecommuting as a way to give employees more flexible schedules and in some cases make up for not offering bigger raises, but also to curb office space expenses,” (Thompson, 2012) As this seems to be a growing trend for the future, management needs to catch up with the tide. Such rapid growth can bring growing pains that have to be addressed. Nearly all companies that allow or offer telecommuting arrangements, have very informal policies or arrangements with their employees leaving the potential open for a myriad of misunderstanding, problems among staff, or legal vulnerabilities. Not beginning with a well-defined policy is almost always a mistake in any business operation and telecommuting is not any different. Management needs to identify which departments will be to operate with telecommuting staff, how will the office staff coordinate with those out of the office, or will telecommuters be more independent? Critical thinking and decision making at the beginning will likely lead to less problems during the launch of a telecommuting program. However, no policy in the history of business management has ever been created that addressed every issue from the start. Revisions will be made as new issues arise.
Legal vulnerabilities certainly exist for the employer with the employee working in uncontrolled environments. Companies should ensure that very specific guidelines are drafted for a policy covering telecommuting reporting expectations, guaranteed hours when the employee will be available, any restrictions that may apply, etc. to protect both parties. Policies should also cover what happens if a telecommuting employee is injured at home, applicability of employer’s insurance for telecommuters, and the responsibility for the equipment in the employees’ home.
Companies considering offering the option of telecommuting often have concerns with accountability of employees with the employer. In the age of technology, this may seem to be an old school management style concern, but it does still exist. While many studies report increased productivity among telecommuters, one must ask – is that due to the self-reporting of data or that the highest producers are generally the first employees chosen for telecommuting? Either one or both of these conditions could greatly skew the results of a study on productivity. Bottom line it is not possible to have direct supervision of telecommuters. Often times there are employees hired particularly to be in the office to inspire staff morale or brainstorming. If one of these employees was to suddenly leave the office to telecommute, the dynamics of the office would change substantially. However, most telecommuters do not work the majority of hours off site. In general the remote hours average six to eight hours per week.
In reviewing the latest research on telecommuting, you will find most of the research centers on how telecommuting affects the employees for the better or not. On occasion, the effect on the employer is discussed. “The fundamental point is that much of the value that gets created in a company comes from the ways in which workers teach and learn from each other. If telecommuters do less of that, the organization will be weaker.” (Surowiecki, 2013) Last year Marissa Mayer, CEO of Yahoo! took a bold step and banned telecommuting by all Yahoo! employees which was a shock to their corporate culture. She faced a mountain of criticism and many wondered if it would be too much for the shaky company and be its undoing. However, Mayer, who had been a stellar employee before her promotion to CEO, was taking a new stance that affected everyone – including her. Mayer felt strongly about face to face time to build connections, relationships and most of all trust within the virtual team. This is vital in a company that is not thriving. However, just because co-workers are getting face time and are likely in the same building during the work day does not guarantee more success than telecommuting. Recent articles about Yahoo! reveals customers with a lot of malcontent for the company’s products. This would leave a person to wonder if that same dissatisfaction translates back to the Yahoo! employees since the changes in how they are allowed to work.
Businesses that have implemented the practice of telecommuting have not always found it successful in reducing work-family stresses. Instead it has often resulted in a general expansion of work hours; workers’ needs for additional hours beyond the regular work week or the employers’ ability to intensify work demands among salaried employees. At least this is what the average employer would like everyone to think about telecommuting - it will end up being worse for the employee and they will request the traditional work schedule again. However such is not the case in all research findings.
Challenges also exist for management in dealing with the organizational work flow assignments. In cases where the telecommuters are working nearly independently, such as sales and marketing, this dynamic works well. However, when you have managerial or professional positions that must interact with support staff working in the office, it can become quite burdensome and may affect office morale. Additionally, people working from different locations on the same project must have excellent communication skills to avoid any errors on the project. Although it is managers and professionals that are most likely to be in a telecommuting situation, and this category of employees are most likely to be the most productive already, it was found by researchers to be a sustainable increase in productivity over time.
Telecommuting is not yet common in the workplace for a number of reasons. Businesses found instead it has resulted in a general expansion of work hours; workers’ needs for additional hours beyond the regular work week or the employers’ ability to intensify work demands among salaried employees. Increased autonomy for the employee, reduced costs and increased productivity from the employee. However, research has shown when properly structured, telecommuting does work for the benefit of both employee and employer.
This paper has addressed a number of topics that are required to be reviewed to have a successful telecommuting program. The company must have a well-defined policy and work flow assignments, the proper technology must be in place and available to prepare work assignments and communicate with the office regularly. There has also been discussion on the effect of telecommuting on the employee, co-workers and the employer. The final point to be addressed is the type of employee suited for telecommuting, as not everyone is suited for it. U S News & World Report published an article by Robin Madell on August 12, 2013 entitled “Do You Have What It takes to Work From Home?” In the article she listed the five top traits that can make or break flexible work arrangements: self-discipline, confidence, resourcefulness, comfort with self-imposed deadlines, ability to stay visible. The last skill an employee absolutely must possess is the ability to STOP working and avoid the endless workday that leads to burnout.
Having reviewed a voluminous amount of research studies on the topic, some of which referred back to each other, telecommuting is definitely a sustainable option for companies to utilize for improving employee morale and saving money within the company. The implementation must be done carefully with very specific policies to address potential legal vulnerabilities as well as avoid misunderstandings or unmet expectations. In addition staff must be carefully chosen to participate and everyone on staff that will integrate with the program must be informed about the work flow processes to avoid any angst as much as possible between co-workers. Businesses should consider telecommuting as part of the new business operations model for the future.
References
Butler, E., Aasheim, C., Williams, S.
(2007). Does Telecommuting Improve Productivity? Communications of the ACM. Retrieved January 17, 2013 from the Ashford Library
Goodman, E. (2013) Telecommuting: Is it right for you and your business? Journal of Property Management. Retrieved January 17, 2013 from the Ashford Library
Green, A. (2013) 8 Benefits Employees Wish Employers Would Offer. US News & World Report. Retrieved from http://money.usnews.com/money/blogs
Kurland, N. and Egan, T. (1999). Telecommuting: Justice and Control in the Virtual Organization. Institute for Operations Research and the Management Sciences. Retrieved January 17, 2013 from the Ashford Library
Madell, R. (2013). Do You Have What It Takes to Work From Home? US News & World Report. Retrieved from http://money.usnews.com/money/blogs
Meier, A. (2013). The Liquid planner Blog. Retrieved from http://cdn.liquidplanner.com
Surowiecki, J (2013). Face Time. The New Yorker. Retrieved from http://www.newyorker.com/talk/financial/2013
Thompson, K. (2012) Working through Telecommuting. Phi Kappa Phi Forum. Retrieved January 17, 2013 from the Ashford
Library