As outlined in 10 signs your company needs telework, most of Canada's one million teleworkers telework informally under private agreements with their boss. Their organizations are to be commended for being open to this innovative way of working. While most of them experience some benefits, the best return on investment is realized only if they 'go formal' with a well-designed  telework program. A well-designed telework program is always cost-beneficial and minimizes security, health, financial, labor and other risks. When considering the cost benefits of telework, here are just a few cost issues you should look at.

Recruitment & Retention Telework is becoming a make-or-break issue in employee career decisions. If you have recruitment or retention problems, consider EKOS Research findings: 33% of Canadians would choose telework over a salary raise: 43% would quit for another job that allows telework.  See our section on jobs, recruitment & retention.

Morale Telework is a morale builder. Resisting it, especially when your competitors offer it to their staff, damages morale.

• With telework, AT&T saved $3,000 per office for approximately $550 million by eliminating or consolidating office space people no longer need.
• About 25% of IBM's 320,000 workers worldwide telecommute from home offices, saving $700 million in real estate costs.

On their own, new officing strategies such as office sharing and "hotelling." can provoke resistance. But add telework, and employees will readily trade off their personal offices. See our section on office space and on Timeshifting

Productivity Dozens of reputable studies (many are outlined in this site) have proven that teleworking 1 to 3 days per week easily increases overall employee productivity by 10 to 20% -- a great way to trim overtime and related costs. Doing the math, five to 10 teleworkers equates to one "free" extra worker. This demolishes the myth that teleworkers will goof off because they are "out of sight."

• American Express telecommuters handled 26% more calls and produced 43% more business than their office-based counterparts.
• Compaq Computer Corporation documented productivity increases ranging from 15 to 45%.
• Surveys and pilots conducted by IBM Canada (where about 20% of its workforce teleworks) indicate that employees can be as much as 50 per cent more productive when they work in telework environments.

Absenteeism & emergency preparedness Canadians miss 10 days/year on average (11.7 for public servants) due to illness, childcare, eldercare, being home for trades people etc. This, and the cost of wages for replacement workers, cuts into payroll costs. No one expects employees to work when too ill, but teleworkers can often perform at least some of their normal work. Studies show that telework cuts absenteeism by 20%.  Telework also mitigates absenteeism & business disruption during strikes, floods, epidemics, bad weather and other emergencies.

State Audit findings: North Carolina State Auditor Ralph Campbell: "By our own conservative estimate, the State could save over $23 million in improved productivity, reduced costs in office space, and avoid personnel turnover costs versus the cost of implementing a telecommuting program for only 5% of our workforce.

Other Cost-Benefit Resources / Articles:
	Cisco saves $277 million through telework strategy
	Jack Nilles, has an updated his on-line telework/telecommuting cost-benefit analysis for employer's and teleworkers
	Montana Department of Revenue : Montana could save if state agencies examined opportunities for employees to work at home
	British Telecom says British businesses are missing out on huge savings by not adopting flexible working and telework. Improving desk utilisation by replacing the conventional one-desk-per-employee arrangement with fewer “hot” desks can save £16,000 a year per employee
	Telecommuting gains as way to trim costs. Companies can help employees balance work and home, while achieving significant savings
	US Patent Office expects to save roughly $1.5 million in office rental costs -- Patent attorneys working from home enable the PTO to relinquish about 3 floors, or 47,000 square feet, of office space
	Telecommuting saves businesses, agencies millions. Once heralded as the workplace of the future, telecommuting is thriving today and saving companies millions. About 25% of IBM's 320,000 workers worldwide telecommute from home offices, saving $700 million in real estate costs. IBM also reaps additional benefits in higher worker productivity and a happy work force
	Chopping staff today can backfire on bosses tomorrow. Flexible work arrangements such as telework help lower the bills and keep staff happy and motivated
	Texas Comptroller recommends telework as way to achieve significant savings
	Telework helps Merrill Lynch and IBM save millions
	A must read! Telework saves employers $10,000 per teleworker
	Telework: pros and cons
	US cost benefits
	See Canadian Scene
	Cost-benefits of telework at Holland America
	Telemanager's Guide to cost benefits
	The Economics of Teleworking
	Absenteeism a big problem that "work-life programs" such as flex time, job-sharing and telecommuting can help