Telecommuting: Benefiting the Employee and Organization
By: Hillary Schwanbeck, HR Senior Generalist
May 3, 2011
Remote work, telecommuting, telework, working from home… regardless of what you call it, the traditional commute to the big office building has a shiny, new alternative, and it is on the rise.
Telecommuting, although it has been an option for well over a decade, has become a prevalent substitute for the conventional “daily grind” in the past few years. Several factors are believed to be contributors to the increase in popularity of telecommuting; the proliferation of remote working technology, the need to the cut costs, the rise of gas prices, and the change in culture and generational desires.
Technology has advanced to the point where anyone, anywhere with an internet connection can connect to anyone else, anywhere else with an internet connection. Advanced videoconferencing technology, sophisticated mobile phone and devices, abounding WiFi hotspots, and complex networking and server capabilities allow for companies to affordably offer a telecommuting option for their employees. Investing in telecommuting technologies, although it will not immediately allow a company to cut costs, has the potential to save big bucks in the long run. Organizations that have telecommuting as an alternative will be able to save large amounts of money per telecommuter by downsizing physical office space, cutting electricity usage, etc.
The telecommuting option can also save companies money through pay raises because telecommuting, or working from home, is essentially a pay raise. Employees who work from home are able to save upwards of $5,000 (in some cases more) annually on gas, wear and tear on their vehicle, dry cleaning and purchasing new business suits, among other things. Additionally, employees typically would give almost anything for the option of working from home, and that includes forgoing big, fat pay raises. This is definitely not a suggestion to underpay telecommuters, but the telecommuting option is an enticing and valuable benefit that can outweigh a larger paycheck.
Furthermore, employees who work from home are typically harder working and more productive than workers in a busy office setting. Not only are they less distracted by the goings-on of the office, but because they are not losing 1 or 2 hours commuting, and because they live where their office is, they are usually at work longer than the average employee, which in turn leads to more getting done. Many telecommuters will admit to taking a few meal breaks throughout the day, but working beyond the normal office hours their other coworkers hold. More productivity equals more work, which leads to more services or product availability.
One final and major area where companies that offer a telecommuting option can save money is turnover. Turnover can hit an employer where it hurts. When considering the cost of turnover, an employer must take into account an exhaustive list of factors such as lost productivity, cost of temporary employees, the risk of spreading other employees to thin, time and money spent on recruiting, invested training in the lost employee, time and cost of training and on-boarding the replacement, and a possible increase in unemployment premiums. So long as telecommuters are kept part of the company’s culture, and not left out in the cold, they are typically happier than those facing a long commute Monday through Friday, and in turn less apt to search for another job.
Telecommuting definitely has its dukes up when it comes to cost savings, but it also offers peace of mind benefits for the employee and employer alike. Telecommuters typically experience less stress because of a variety of factors – the biggest of which is the daily commute. According to a Harris Interactive Poll commissioned by The Workforce Institute, 48 percent of workers admit that their commute has a significant impact on their job satisfaction. 32 percent of the workers surveyed consider the commute (time, traffic, etc.) when considering a new job. Also, telecommuters will typically get more sleep than the average commuter. Telecommuters don’t necessarily like to advertise it, but they typically do sleep later in the morning and typically will work in something akin to pajamas. There aren’t any servants waving palm fronds or bonbons in this equation, but the additional sleep and lackadaisical dress code do contribute to a more relaxed mind while at work.
This could be an attractive option when recruiting new talent for your organization. Telecommuting may allow your organization to reach beyond their normal geographic area for recruiting, which can give the company access to talent it otherwise could have never tapped. An incredibly talented employee population is a clever method for getting a leg up on competition, especially if you aren’t losing money hand over fist on costs related to expanding office space or relocation.
When exploring the possibility of a telecommuting program, employers should also keep in mind the evolving culture and generational changes. It is not uncommon these days to have both parents in a family working a full-time job. As a result of this shift to dual-career families, many employers have revisited their vacation policies, customizing them to better meet the needs of these busy families. These busy families will typically need more time off to care for children since there is not one spouse solely responsible for caring for the children and home. Telecommuting can also be an appealing option for dual-career family members because it allows them to save time on the commute and grants them more flexibility during their working day than they would traditionally experience in the office setting.
Telecommuting is also an appealing option for the two most common generations in the workforce today. Generation X, those born from the mid-sixties to the mid-seventies, currently dominate the workforce today. Generation Xers have solid knowledge of computer operation, and have individualistic attitudes. As a result, they prefer flexibility and freedom in the workplace and a casual, friendly work environment. These characteristics allow Generation Xers to easily accept and adapt to a telecommuting relationship; however, Generation Xers have a constant desire to grow and learn, which means companies need to find way to continue to grow Generation X telecommuters and not allowing them to become complacent.
The youngest generation now entering the workforce, Millennials, are the generation born from the late-seventies to the late-nineties. They grew up with evolving computer and internet technologies and as a result are typically extremely adept with it. Millennials not only use internet technology for work, but for staying in touch with friends and family through social networking. This ability to stay connected through technology makes the Millennial a prime candidate for telecommuting. Technological capabilities aside, Millenials differ from Generation Xers in that they need structure and are seeking constant feedback, so it is imperative for the company to provide structured projects and establish channels of solid communication for telecommuting Millennials.
All in all, telecommuting is a great idea for today’s workforce, but not for all positions and employees within an organization. It is important to keep in mind that each worker cannot be shipped off to work from home without feedback, connection and nurturing. They require similar attention that employees in a regular office setting require, so employers must find creative ways to connect with their virtual employees.
Achilles Group can help structure your organization’s telecommuting policy and procedures. Contact us today for more information about our HR Solutions.