Telework Evolving from Business Strategy to Business Necessity

Telework is no longer just a business strategy but a business necessity, according to summaries from the 2006 Telework Conference presented by WorldatWork and ITAC in Washington, D.C. in late September. Companies and government agencies are starting to view telework as a way to control costs while improving productivity.

ìTelework is not just about providing an improved work-life balance for the employee,î said Anne Ruddy, president of WorldatWork, an international association of human resources professionals. ìIt is also about improved business performance for the employer.î

Over 120 conference attendees from the private and public sectors discussed three trends contributing to the telework movement: Distributed work is a reality -- 68.5% of the American population are Internet users, 36% have high speed connections, and 40%-70% of office space is empty on any given day ñ i.e. most knowledge worker employees are already mobile. Talent shortage is imminent ñ by 2014 there will be a shortage of eight million workers across all employment categories as demand for skilled talent outweighs supply for the next decade. Time is the new currency ñ many workers are dual-focused on both work and family so that a premium is placed on time and flexibility over money.

Emergency planning and environmental concerns require a more distributed Federal workforce,î said Stanley Kaczmarczyk, Acting Deputy Associate Administrator for the Office of Governmentwide Policy, U.S. General Services Administration. ìDemographic trends and existing technology investments also support the need for more strategic and proactive Federal telework programs.

In a report guide entitled, Exploring Telework as a Business Continuity Strategy, ITAC, the Telework Advisory Group for WorldatWork, estimates the current number of teleworkers in the U.S. to be 26 million, nearly one-fifth of the workforce, up from four million in 1995. It is estimated that 100 million U.S. workers will telework by 2010. The dramatic rise in telework will take place in part because more and more companies are realizing the cost benefits from telework and are creating the infrastructure ñ both cultural and technical -- to support it.

Cost-benefit models are increasingly being developed and applied to quantify employer cost savings from telework. Here are a few examples from conference attendees who have reaped the benefits of telework within their companies:

Relocation cost savings ñ the cost to relocate an employee to another city can run as high as $100,000 Increased productivity from reduced employee absenteeism for teleworkers (teleworker productivity is up to 45% higher than in-office workers) Cost avoidance in office rent when employees telework ñ office space for the average worker costs $10,000 per year Savings from reduced need for office space ñ as much as $100 million for large corporations Reduced recruitment costs ñ employee retention has improved significantly in business units where telework has been embraced Overall job satisfaction ñ employee satisfaction is highest among teleworkers and their managers, up to 25% more as compared to in-office employees.

The Telework Conference is an annual event presented by WorldatWork, an international association of human resources professionals. The next conference is schedule for fall 2007.