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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.
Program set up,
remote access, equipment etc Program set-up, training and
most other costs are 'one-time' and quickly recoupable. Remote
access and equipment costs are ongoing, but far overshadowed by
significant savings.
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.
Real estate
& office costs Your organization could save 1 office
for every 3 teleworkers (that's about $2,000 per teleworker per
year, or $200,000 per 100 teleworkers).
- 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
Relocation
costs Why move people when you can move their work?
Telework and some business travel are a much cheaper combination
than relocating staff and/or replacing those that quit rather than
move.
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.
Stress &
work/life balance Work / home life conflict is the top
Canadian job disatisfier. With telework's fewer interruptions and
improved productivity help employees catch up on their work; and
reduce their stress, burnout risk, going-to-work costs and commuting
time. Remember that the total yearly commute of average Canadian
workers equates to six to eight full workweeks.
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."
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