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Telework can save thousands, often
millions, of dollars in real estate costs. Even without telework, many of
today's knowledge workers and their managers spend more than half
their time away from their offices (travel, meetings, illness,
flexible work arrangements, etc).
As the use of telework increases, and
with average teleworkers spending 2 or 3 days per week away from the
regular office, the resulting empty office space can easily be
re-rationalized by desk-sharing, hoteling or other office-space
strategies. Some save millions of dollars and/or square feet. The resultant savings should form
part of your ROI for telework. For example,
- If you average in common areas
(hallways, meeting rooms, washrooms, parking, etc), average
per-office costs in many Canadian cities can reach the $6,000
a year range.
- With just a bit of
strategic planning, organizations can save about one office
for every three teleworkers. Doing the arithmetic, a
medium-sized organization with 100 teleworkers can save some
$200,000 yearly just by cutting 30 offices.
- With 1,000
teleworkers, an organization could reasonably save some
$2,000,000 per year.
- And that's in
addition to the other significant savings that telework brings
to the organization!
These
practical case studies illustrate the savings possible:
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Using telework, AT&T was
able to reduce its office-space costs by 50%. Since 1995, the company has saved
$500 million in office lease costs by promoting
telecommuting. In 1998, about 55 percent of the
company's 55,900 managers telecommuted at least once a month
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Telework
allowed IBM to drastically reduced the need for office space
and save $56 million per year across the company. After
2 years with telework the company negated the need for 2
million square feet of office space
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Pac Bell
saved about $20 million over five years.
- Sage
Research reported that 30% of corporations with
telecommuters agreed that having telecommuters helps reduce
real estate costs. (Opportunities in Telecommuting: A
Quantitative Analysis of Drivers, Deterrents and Deployment
Patterns. Sage Research, Jan 2000.)
- Merrill
Lynch reported saving $5000 to $6000 for each
office space eliminated through the use of telecommuting.
("Who's in the Home Office?" American Demographics,
June 1999.)
- The
Texas Workforce Commission Appeals Department
reduced the required rent-able square feet of office space by
1,824 square feet by having 19-22 attorneys telecommute.
(Workplace Evaluation Study. U.S. General Services
Administration, Office of Government wide Policy, Sept 1999.)
- Georgia
Power reported a savings of $100,000 annually, with
office space needs reduced by two-thirds. ("Telecommute
leaves road less traveled." Computerworld, Mar 1998.)
- Of Nortel's
13,000 teleworkers, 4,000 no longer need dedicated office
space in a Nortel building. Overall, telecommuting allows the
company to save $20 million dollars a year on real estate
costs — equivalent to two 20-story office buildings of
40,000 square feet per floor
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Misc articles etc |
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President Obama aims to reduce number of federal office
buildings by encouraging more telework and office sharing |
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Work Zone: Musical cubicles -- As technology allows workers to
be more mobile, more companies adopt 'hoteling' -- nondedicated
spaces that are shared |
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Jan 04.
Getting people to the seat, Part 1. Network World looks at ways
to remove the barriers to federal telework center use |
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Jan 04. Canadian HR Reporter —
Satellite offices an
option when the commute drives staff away No
matter how much they love working for you, the commuting
grind gets even the most loyal employees dreaming about better
work-life balance |
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Who's
been sitting in my chair? Office sharing, occasioned by
part-time workers, telecommuters etc, can be challenging |
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Telecommuting
for attorneys at the US Patent and Trademark Office enables
the PTO to relinquish about three floors, or 47,000 square
feet, of office space for a savings of roughly $1.5 million in
office rental costs |
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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 |
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Sun
Microsystems hopes to reduce its real estate costs
dramatically by moving from 0.8 employee to 1.8 employees per
office. That's the message delivered by CEO Scott McNealy
recently. Holy cow. Does that mean that Sun will need half of
the space that it currently occupies? Could similar
"knowledge" companies also reduce their space
requirements? |
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Sun
Microsystems hopes to reduce its real estate costs
dramatically by moving from 0.8 employee to 1.8 employees per
office. That's the message delivered by CEO Scott McNealy
recently. Holy cow. Does that mean that Sun will need half of
the space that it currently occupies? Could similar
"knowledge" companies also reduce their space
requirements? |
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Where
should I sit? -- When Cigna HealthCare began dispersing
workers from its corporate office, executives soon realized
the workers often had no place to work when they occasionally
returned |
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Handling
the hotel -- Dos and don'ts of creating temporary offices for
teleworkers |
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Mine,
mine, mine -- Once heralded as the answer to real estate space
woes and workers' desires to be less tied to the office,
hoteling is getting a critical look as workers lament the loss
of workplace anchors. |
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Gil
Gordon has a new 8-page guide with tips and tricks to help
employees get along in today's office setting. It includes
simple solutions for problems associated with 'cubicle wars',
offices without walls, and 'hoteling' |
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Innovative
Officing in the Canadian Government |
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Hotelling
- Fiona Potter |
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Tough
Minnesota law: building plans contingent upon telework |
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Mobility
and the New Placemakers - Franklin Becker, Ph.D. |
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Real
Gold in Real Estate - Brenda Howard |
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Boundaryless
workforce depends on age, position, company size |
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Cube
Stakes Nice article about new officing |
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Fast
Company: The role of physical offices in a virtual world |
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In
future, when telecommuting becomes a white-collar norm, will a
new
wave of telecommuters start living - and working - in
empty office buildings? |
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Hixson,
the Cincinnati-based workplace design firm says office
of the future needs to do much better job of supporting
telecommuting and overall productivity. It's April 2000
survey of Fortune 1000 companies, says:
- Telecommuting
expected to triple over the next 5 years to up to 50% of
workforce, and the average worker spending only 36% of time in
their workspace.
- When
telecommuters work at employers' premises, they feel
unsatisfied with and underserved by the facilities available
to them (rating facilities a "2" or lower on a scale
of 1 to 5).
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