March 2007
Teleworking Towards Tomorrow:
Can Technology Really Change the Workplace?

From the Executive Director
Matt Bennett, NMRC Executive Director

Welcome to the first edition of NMRC Milestones.  This new bi-monthly e-newsletter provides the latest expert insights today’s cutting edge public policy issues and features “over the horizon” views on the technology and innovation trends that will shape tomorrow.

Milestones was created as an information resource for policymakers, consumers, industry executives, and thought leaders. As a regularly occurring update, Milestones is a platform for new voices and a discussion vehicle for finding workable policy solutions. Future NMRC Milestones will include topics such as electronic medical records & health IT applications, energy efficiency initiatives, new broadband deployment strategies, and data retention proposals. The NMRC encourages submissions from all our readers.

The theme for the March 2007 edition is the growing importance of telework and how the advent of the technology-driven “work from anywhere” philosophy will change the workplace. Broadband Internet connections and ever-evolving computer devices are making work location virtually irrelevant.  According to a recent Business Week feature, 14% of the U.S. workforce “gets the job done” from home more than two days per week.  This is up from 11% in 2004.

The NMRC brought together four nationally-recognized experts to explore the “hot” topics in telework and provide their thoughts on the continuing growth of alternative work scenarios.  Joanne Pratt, a national telework consultant, examines the overall growth in telework, showing how changes in technology have quickly accelerated the use of remote work arrangements.  Chuck Wilsker and John Edwards of the Telework Coalition discuss the important role of telework in business continuity planning.  Finally, Dr. Cynthia Ruppel of the University of Alabama, Huntsville analyzes telework from both domestic and international perspectives.  These diverse articles showcase the current benefits of telework, the hurdles that must be overcome to accelerate telework adoption, and the technologies that are changing the way we all work.

Yes, technology can change the workplace and it already has. Teleworking - employees working at home during the normal business day - is one manifestation of work reorganization driven by technology. Teleworkers lead the way as early adopters of technology. A family I interviewed in 1981 teleworked with no less than eight incompatible computers: an IBM Personal Computer, a Tandy 32K color computer, a TI bubble memory terminal, a Sharp programmable computer, and a Texas Instruments Read & Spell and Touch & Talk for the kids. Today, more people are teleworking because evolutions in technology have made it possible and certainly much easier.

Technology has become compatible, connected, compact and cheap
Four “Cs” have made remote work not only possible but inevitable - technology has become compatible, connected, compact and low in cost.  The PC and Microsoft won the hardware and software wars, respectively, ensuring global compatibility in core business technologies. The Internet enabled connectivity and information sharing among dispersed work sites. The phone, personal digital assistant, Internet connection, and video screen have been compacted into the all-in-one, pocket-handy device. Finally, the cost of greatly increased computer and technology functionality has plummeted. Now teleworkers not only work in home offices but are highly mobile. But are there enough of them to really change the workplace?

Teleworkers on the way up
According to the new Dieringer Research Group survey sponsored by WorldatWork, since 1990, the long-range upward trend of working at home during the business day has followed overall growth in the workforce. (See Figure 1) The 28.7 million combined employees and independent contractors who telework at least one business day per month represent 19% of all workers. Although we still hear from managers, “How will I know they’re really working?” employers are finally realizing the benefits of freeing their employees to telework. The number of employee teleworkers increased 25 percent in one year or 63 percent from 2004 to 2006, suggesting this will be a continuing upward trend.


Figure 1

These teleworkers work many places--in cafes or restaurants, hotels or motels, outdoors in parks, and in airports. From 2005 to 2006, the numbers of teleworkers working at their client’s or customer’s place of business remained about the same, but those working in their car increased by 17 percent and those working on an airplane, train or subway jumped by 36 percent.

The home is still the most likely locale for telework.  In just one year, the number of people who never work at home dropped 24%. Those who work at home “almost every day” jumped 20%. Individuals, including the self-employed, who do “any” work at home - after hours and on weekends as well as during the business day - have remained at about 45 million, or 30% of employed adults.

Where will it all go?
The central office will continue to be a primary workplace. It has unique efficiencies -work-related and sociological - but not all work must take place within its confines. Broadband services and wireless technologies are making the remote office nearly equivalent to the central office in terms of functionality. Teleworkers are enthusiastic adopters of the high speed, "always on" connection to the Internet, and more recently, access to wireless technologies. The Dieringer Group survey found that 67 percent of teleworkers are using broadband, up 45 percent from 2005, and estimates that 16 percent now use wireless Internet services, compared with 9 percent of all U. S. adults.

No one regrets the disappearance of TI, Tandy, Cromemco, Commodore, Atari and Dec computers. Compatible, connected, compact and cheap technology has made teleworkers mobile. The trend continues upward and, for better or worse, Americans can work 24/7, any place, any time.

A Business Continuity Plan (BCP)¹ without Telework is not a BCP
Chuck Wilsker and John Edwards, The Telework Coalition

Whether you call it telework or distributed work, you need it if you want to have a comprehensive Business Continuity Plan (BCP). Dealing with the inability of personnel to access the workplace is an often neglected part of BCPs. A recent study found that less that half of the organizations polled had incorporated telework into their plans. Employers go to great lengths to back up their data and infrastructure, but the inability of workers to get to either their offices or other assigned alternate work locations -  whether they are destroyed, quarantined, or the staff itself is quarantined - will have a devastating impact on an organization’s ability to survive.

Attitudes towards telework need to change from regarding it as a “take it or leave it” employee flexible work benefit to embracing telework as a survival tool. Telework must no longer be used for employees and activities that have satisfied a lengthy laundry list of criteria, but it must be assumed that all employees and activities can be teleworked unless reasons are provided as to why not. In other words, turn present commonly followed methodology on its head.

We need to follow the lead of employers who have established a policy that requires personnel from every department to regularly work from an alternate location, whether from home, a supplier’s office, a library, or a telework center as practice in case some event makes their traditional offices unusable or inaccessible.

While telework is only a part of a BCP, it is invaluable on an ongoing basis and has a positive affect on an organization’s bottom line. A telework program pays for itself in reduced real estate needs, increased employee productivity, improved employee retention, reduced absenteeism, and the opportunity to recruit from a larger talent pool. In 2004 at AT&T, for example, almost one third (30%) of all their management employees worked full time outside of the traditional office. The company realized an estimated $180 million in bottom line benefits.

Suggested Guidelines
Buy in from senior management is critical. They should take the lead by appointing a working group to plan your telework program and put it into action, develop policies and procedures for implementation, monitor and evaluate progress, and assess the need for refinements that will make the strategy more effective. Representatives from HR, IT, your BC team, legal, real estate, senior management, and the employees themselves should be included. The working group will then:

• Appoint a telework program manager.
• Develop a written list of policies and procedures.
• Put together a written contract outlining the responsibilities of both the organization and the employees.
• Establish a training program to help managers understand how to manage a remote workforce.
• Determine what, if any, equipment will be provided by the organization and what recurring expenses will be covered by the employer or the employee such as broadband access, a second phone line for business calls, ergonomic furniture, lighting etc.
• Establish security levels that must be maintained such as virus protection, firewalls, backup, lockable file drawers, etc.
• With IT taking the lead, evaluate remote access systems and/or software. Make sure you have capacity and/or licenses to accommodate all of the users that might need to have simultaneous access to your network.
• Determine how voice communications will be handled. Calls to your office may need to be rerouted in the event of a total system outage.
• Review other collaboration technologies such as web based file access, spread sheet and word document sharing, and web based video conferencing.
• Establish protocols on when and how to advise employees not to come to the office and what alternative measures to take.
• Establish contact directories and systems, between colleagues and with family members to ensure on-going communication between them, wherever they are.
• Establish practice and simulation programs for both managers and employees, and then practice, simulate, practice, simulate and practice again.
• Put together a home office health and safety checklist. Issues to address should include proper seating, lighting, electrical capacities, smoke detectors, etc. Include FEMA’s survival kit guidelines that include supplies of water, canned and dried foods.
• Establish goals and objectives for both the program and its participants.

We recommend the use of laptop computers for teleworkers. Although they cost more than a desktop, they eliminate the need to have a separate computer at home and the office. When replacing desktop computers, do so with laptops.

The capability to telework can eliminate another cause of disruption within an organization - the rapid spread of infection throughout the workforce. There is a term called ‘presenteeism.’ It is, in a sense, the opposite of absenteeism, where an employee does not come to work. With presenteeism, an employee with an ailment such as the flu goes to the office and spreads his or her infection among coworkers. Such employees should be counseled to take advantage of the telework option and remain home. And, let them know that they will not be charged sick leave when working from home in this situation.

We can not emphasize enough the need to practice. This is a key factor to having a successful telework program available when needed. There is no better way to do this than to have a program in place and use it regularly.

This article was originally published in Association of Contingency Planners Newsletter, November 2005.

The term telecommuting originated in the 1970s during the United States (U.S.) gasoline shortage.  The emphasis at the time was on eliminating the commute to work and in some areas of the U.S., telecommuting is still used to reduce gasoline emissions.  However, outside the U.S., the term telework, instead of telecommuting, is used to emphasize the concept of working from another location rather than emphasizing the elimination of commuting.  In both cases the idea is that work is completed from a location other than the main workplace using telecommunications services and technologies to complete the work.

According to various published statistics, the number of people in the U.S. who work from home ranges from 3 million to 27 million people.  The WorldatWork estimates that 100 million people in the U.S. will work remotely by 2010 due to technological advances and cost savings to employers.  Some of the variations in these statistics can be accounted for by the use of varying definitions of telework and its frequency.  Telework may range from occasionally working remotely to working only remotely.  However, it is clear that this trend is growing and many expect its growth to continue.

This is due to both the growth of remote work policies in companies, as well as the necessity of teleworking in particular situations.  Telework was tried by many companies in Atlanta during the Olympics in the summer of 1996, by companies such as Blue Cross in the aftermath of September 11, 2001, and during hurricanes and other natural disasters.  Once the advantages are realized it is difficult to “go backwards”.  According to a study by Korn/Ferry International 78% of managers believe their teleworkers are just as productive as those in the office and that 48% of employees indicated they would consider a job which involved telecommuting on a regular basis.  Similarly a study by Yoh, reported in HR Focus in February 2007, states that remote work policies are in place at 81% of companies and 78% of HR managers believe that telecommuting will likely increase over the next two years. 

The federal government has offered telework programs since the1970s; however not all federal employees know about, or use these options.  When the federal government measured telework in 2004, only 7.7% of the federal workforce teleworked despite the fact that 19% of the jobs were declared suitable for telework.  At IBM nearly 40% of the work force regularly teleworks and it has been reported that telework is also an option at Time Warner Cable, and PacifiCare.  At Midwest Family Mutual Insurance Company, telework represents the only option for employment. 

The advantages of these arrangements are becoming more well-known.  O’Keeffe & Company, supported by Intel and other tech firms, formed the Telework Exchange to convey the benefits of telework and the financial advantages of these arrangements which can include reduced office space needs and related costs, the ability to attract highly skilled workers from a larger labor pool and potentially increased productivity, increased employee loyalty, and reduced absenteeism, as well as the elimination of employee retention issues such as occur when one spouse relocates or when employees opt not to relocate.   Society benefits from less gasoline consumption and emissions as well as reduced traffic and the need for less road infrastructure and repair.

Governments will encourage telework to deal with environmental and infrastructure concerns.  In fiscal 2007, the Japanese government plans to provide fixed asset tax breaks to companies that introduce a particular telework system in which a server manages personal computers from the telecommuter’s home.  The government plans to use the tax breaks to double the number of teleworkers by 2010, which were estimated by the Construction and Transport Ministry at about 6.74 million in 2005 - about 20% of the working population.

Thus, telework is not a U.S. phenomenon.  In the UK Twang.net suggests there are an estimated 2 million teleworkers.  In today’s global environment to compete for top talent and to gain the competitive cost benefits of telework, U.S. companies will need to compete for global talent via teleworking.

The growth of telework will be impacted by two factors – technology and human resources.  The “old” school of management by observation (“walking around”) will continue to die out and new management will be more concerned with results than with physical presence.  As baby boomers retire and the workforce shrinks, younger workers may have different motivations. With scarce labor resources, organizations will find it necessary to offer a telework option.  Even today, the most talented workers thrive in a flexible work environment and often seek the opportunity to telework.  For many it will be difficult to return to an office just as it is difficult to eliminate your cell phone/Blackberry and other wireless devices once you become accustomed to their advantages.

While telework has many benefits, there are still some issues to address such as social isolation of employees, difficulty building corporate culture, and the need for increased corporate security.  Many of these concerns will be overcome by advances in technology and the growth of telecommunications networks.  Many companies are promoting products aimed at making telework more secure as well as more cost effective.  VoIP is gaining attention for cost effective telecommuting with technology such as video phones. 

There are also many lessons for outsourcing from telework.  Just as it is recommended that telework is best managed with a focus on objectives and outcomes, clear communications and appropriate metrics the same can be said for outsourcing arrangements.  They must be designed with the same care.  Similarly, the concern for security when working from a distance is relevant in both situations.  Maintaining the relationship with long-distance partners is a common issue whether the “partners” are your teleworkers or the outsourcing firm and its workers.  So the trends have similar concerns and similar management and technological solutions, and as companies embark on outsourcing arrangements they become accustomed to these procedures and technologies.

A combination of advances in technology, such as greater bandwidth to the home, VoIP services, video telephones, and enhanced software for collaboration will mitigate some of the issues that currently inhibit telework including costs, social isolation, and security.  This fact combined with culture changes as people become more accustomed to communicating and working via these technologies will facilitate telework’s continued growth.  While the growth has been slower than imagined by Alvin Toffler in his book The Third Wave, it has been progressing.  Telework has moved from a few individual arrangements with specific employees to corporate policy.  Other barriers are beginning to crumble also.  Technology always moves faster than the ability for culture to adapt to it.  Robert Kraut spoke about the “edifice complex” that existed in the corporate culture which acted, and may still act in the near future, as a barrier to the growth of telework.  As these barriers are removed, such as new employees who may already be accustomed to working at a distance from distance learning activities, telework will spread.  While telework may never be the only way to work, it will be one option wherever it is appropriate to the job and the benefits outweigh the costs.

For comments, suggestions, or submissions for future NMRC Milestones editions, please contact Matt Bennett at mattbennett@newmillenniumresearch.org.

© New Millennium Research Council, 2007. All rights reserved.