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Productivity increases due to telework range from 10%-50%, as reported by such companies as Merrill Lynch, Arthur Andersen and Cisco Systems. In a national study conducted by Telework America in 1999, employees reported productivity gains of 22%.
Teletrips helps create, implement and manage public-private partnership programs to reduce commuter congestion, improve air quality, and reduce energy consumption.
By tracking NOx, VOC, CO and CO2 emission savings of employers’ trip reduction efforts using established protocols, Teletrips provides the employer with an asset, that is, pollution credits (Mobile Emission Reduction Credits or MERC’s) that can be traded or used for environmental compliance.
The reports generated by Teletrips also help the company assess the energy savings attributed to their commute reduction program, audit the bottom line impacts of the employer’s program and substantiate company actions that reduce business risk through dispersion of resources.
As urban centers become more congested and costly, teleworking offers:
Reduced real estate costs of up to 60 percent
Reduced relocation costs
Reduced costs associated with site moves
The average reduction in office space requirements is roughly 130 to 140 square feet per teleworker. Assuming a rental cost of $50 per square foot, an enterprise can save $6,750 per remote user per year.
A formal telework program can improve productivity by as much as 26 percent, or more. Employees attribute this increase to:
Less time spent commuting, leading to more time and less stress
Fewer interruptions and the ability to concentrate for longer periods of time
The ability to better manage personal demands
Flexible hours allowing employees to work at their peak times
Reduced weather-related work loss
Reduced illness-related work loss (teleworkers may be able to work half days when ill and are less likely to spread illness to co-workers)
According to the 1999 Telework America National Survey, absenteeism cost employers an average of $3,313 per year per non-teleworking employee. With teleworking the figure dropped to $1,227, saving employers of teleworkers an average of $2,086, or 63 percent per worker.
Illness (Teleworkers may be able to work half days when ill and are less likely to spread illness to co-workers.)
Personal reasons, such as medical/dental visits, sick children/spouses/parents, home repair/installations, etc.
Even though most teleworkers report that they work longer hours, the average increase in overall employee satisfaction is 10 percent higher than non-teleworkers.
Formal telework programs enhance a company’s image for innovation and provide an edge in the human resources marketplace:
Improved retention of key employees by as much as 22 percent
According to The Gartner Group, employee turnover costs enterprises approximately 50 to 100 percent of the departing employee’s annual salary
53% of employees surveyed by Telework America indicated that, when considering a new employer, it would be “important” or “extremely important” to have the ability to work at home at least some of the time
A greater opportunity to employ handicapped and homebound employees, and meet ADA requirements
A reduction in average salaries due to wider geographic reach
Increased employee satisfaction can lead to increased customer satisfaction. For example, Sears Roebuck found in an internal study that a 5 percent improvement in employees’ attitudes drove a corresponding 1.3 percent improvement in customer satisfaction, which in turn drove a 0.5% improvement in revenue growth.
For each employee or new hire that is not relocated, a company reaps quantifiable benefits. In 1998, the average cost to relocate an employee who owned a home was $53,696; a non-homeowner was $15,604. The average cost to relocate a new hire who owned a home was $40,676; a non-homeowner was $11,491.
Formal telework programs allow employers to draw from an expanded pool of potential employees, including those from diverse geographical locations and older workers who may no longer be highly mobile.
Telework programs also allow employers to utilize a larger share of the more than 54 million Americans with disabilities. Among those of working age, only 29% are currently employed, although 72% of those not employed would prefer to work.
Telecommuting programs facilitate compliance with numerous federal regulations, including the Clean Air Act, the American’s With Disabilities Act, the Family Leave Act and the National Telecommuting and Air Quality Act.
Reductions in air pollution and traffic congestion may be used to foster a green, “good neighbor” image.
On average, teleworkers drive more than 23 miles round-trip to work each day, traveling for more than 40 minutes on the days that they commute. With no teleworking, this equates to more than 167 hours – over four 40-hour workweeks -- and over 5,700 miles per year.
The Gartner Group reports that the benefits most cited by telecommuters are qualitative--reclaimed commute time, flexible working hours, fewer interruptions and more family time.
In a study of Nortel employees, almost 100% of teleworkers reported a decrease in stress due to the ability to work from home.
Employees are able to work in an environment that is designed to meet their individual needs and style.
Better relationships with spouses and children, improved personal morale and fewer sick days are cited by more than 80 percent of individuals who work some of their time at home, reported a random national survey conducted by AT&T in 1997.
According to The Gartner Group, US average telecommuter savings (not including tolls and parking) resulting from reduced auto use can be estimated at $0.31/mile (based on the 1997 IRS-established mileage rate). Wardrobe and dry-cleaning costs can be reduced by 40% for telecommuters who work from home two days a week. Lunch and snack expenses can be reduced by a factor of 5.
Productivity increases due to telework range from 10%-50%, as reported by such companies as Merrill Lynch, Arthur Andersen and Cisco Systems. In a national study conducted by Telework America in 1999, employees reported productivity gains of 22%.
According a random national survey conducted by AT&T in 1997, 71% of teleworkers are more satisfied with their job now than they were before beginning to work at home.
See Teletrips for further details.
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