The Benefits of Telecommuting

The Benefits of Telecommuting

Studies show that telecommuting is gaining popularity with many U.S. employers as they realize the cost benefits offered by telecommuting programs.

According to a study conducted by The Dieringer Research Group of WorldatWork (2006), the number of Americans telecommuting at least one day per month has grown by 10 percent in recent years, rising from 26.1 million in 2005 to 28.7 million in 2006, with roughly 20 percent of the workforce engaging in some type of telecommuting work. Predictions are that this number will continue to rise to an estimated 100 million workers by 2010 due to factors such as increased access to wireless and broadband connections, making it less expensive and more productive to work remotely, and an increasing number of employers favoring alternative work programs designed to help employees with a work/life balance.

State and Federal government entities are also beginning to recognize the benefits of telecommuting and are passing measures to promote telework programs, such as the Federal 2001 Transportation Appropriations bill, which requires federal agencies to allow all eligible employees whose jobs lend themselves to telecommuting and who would like to telework to do so. The continued interest of Congress in promoting telework programs centers around environmental and energy benefits as well as providing the capacity to remain operational during large scale emergencies. Georgia’s Clean Air Telework campaign is also a good example of recent state focused efforts to improve air quality and reduce traffic congestion in metro areas. This program provides grants, tax credits, and other support to local companies to assist them in developing telework programs. (Heibel, 2007)

Telecommuting is becoming more common among IT professionals compared to five years ago, new research shows. In a survey of 1,400 chief information officers, 44 percent said their company's IT workforce is telecommuting at a rate the same as or higher than five years ago, according to Robert Half Technology, a Menlo Park, Calif.-based technology-consulting firm. According to Katherine Spencer Lee, the firm's executive director, enhanced connectivity tools and the proliferation of wireless technology allows IT professionals to have greater flexibility in their jobs and makes it easier for them to work away from the office. The survey also found that among companies where IT employees telecommute, 34 percent of CIOs cited employee retention and morale as the greatest benefits. Another 28 percent of respondents said they saw increased productivity among employees due to the reduced commute time. (Inc.com, 2007, p. 1)

Telecommuting is second only to "casual days" when it comes to the fastest-growing shift in workplaces, according to the American Telecommuting Association (ATA). Why? Because allowing employees to work from home is incredibly beneficial for businesses. It's not surprising, then, that some 85 percent of executives are expecting a significant jump in the number of telecommuting workers in the next five years, according to a Boston Consulting Group study.

" ... The benefits of telecommuting [for employers] include increased productivity, lowering of absenteeism, lower turnover, a higher base of qualified candidates, and it could reduce office space requirements," Stanley said. Indeed, studies have consistently shown that businesses that shift to telecommuting enjoy a 10 percent to 15 percent increase in productivity, according to ATA. Meanwhile, expenses are cut significantly, as fewer in-office workers means less of a need for offices, desks, copy machines, office supplies, etc.

Already, major businesses across the country are embracing telecommuting environments. 40 percent of IBM’s workforce has no official office. One-third of AT&T’s managers telecommute. At Sun Microsystems, Inc., nearly half of employees work from home (and they estimate savings of $400 million in real estate costs over six years as a result). By the end of 2007, all 4,000 corporate workers at Best Buy will be transitioned to a new "results-only work environment" (ROWE), which encourages employees to work any hours they please, where they please, as long as they get their work done.

Only 11 percent of workers take advantage of telecommuting as a work option move that can save an average of $688 a year in gasoline costs. That's according to the National Technology Readiness survey, produced by Rockbridge Associates, Inc. and the Center of Excellence in Service at the University of Maryland. Only 2 percent of Americans telecommute full-time, even though most have the technology to make it happen. Three out of four homes have Internet access; 66 percent have high-speed access. If everyone who had the option to telecommute did so, the number of Americans telecommuting would jump to 25 percent, and the nation would save $3.9 billion a year in fuel costs, the survey suggests.

Harprit Singh, CEO of Intellicomm, an Internet development and communications services firm, voices similar sentiments.

"For a telecommuting program to be effective, it should emphasize the benefits of work-life balance to employees and equip them with the necessary technologies to be productive in a remote environment. Employers not only need to ensure that the teleworking employees do not miss out on the important matters at the office, but also remain conscientious about their productivity," Singh said. (Himmelberg, 2006)

Working remotely offers obvious advantages, not the least being it helps employees avoid wasting time they could otherwise devote to their work. Yet only 16 percent of the people working in the private sector believe their companies let them telecommute, according to a new CDW study.

There are strong arguments in favor of telecommuting or what is also referred to as "telework." Commuters face significant increases in traffic congestion in all 437 metropolitan areas in the United States. Adding up all the associated costs, the Texas Transportation Institute earlier this year concluded that gridlock cost $78 billion annually in terms of 4.2 billion lost hours, not to mention 2.9 billion gallons of