The convergence of new technologies and business trends — not simply employee preference to work at home — is driving a rapid growth in telework. Telework, where work activities are moved to employees’ homes rather than employees commuting to work, makes good business sense, according to a new special report by the Center for Digital Culture (http://www.digitalculturecenter.org). The number of U.S. teleworkers grew from four million in 1990 to nearly 20 million in 1999, and the rate of growth is rapidly accelerating.
Growth in telework programs is increasingly driven by specific business goals, not individual preferences or concerns about traffic and the environment, according to the in-depth, 33-page report, Telework Enters the Mainstream: New Technologies, Social and Business Dynamics Transforming the Workplace. “Telework is no longer a fad,” said Jim Miller, co-author of the report. “Telework is increasingly the result of hardnosed business decisions. It is an efficient, effective alternative to traditional work arrangements.”
Findings of the report include:
- Recent advances in computing and telecommunications technologies make telework more productive. The rapid growth of the Internet, development of high-speed, broadband Internet access (digital subscriber lines or DSL and cable modems) plus increased networking capabilities allow employees to work at home at computing speeds equal to or greater than they have at the office.
- Telework allows employers to reduce office space costs, parking and other overhead expenses by as much as 30%, and an employee working at home two days a week can save a company $12,00 annually; Ernst & Young, the accounting firm, reduced real estate expenses by 7% in the first year of a telework program; telework can reduce the ratio of managers to staff from one to four to one to 40;
- Employee turnover is the greatest preventable corporate expense. Finding and keeping skilled workers is the top issue facing employers, and a 1997 survey found 29% of workers would change jobs if they could not work at home;
- Teleworking employees save as much as $452 a month in commuting and other work-related expenses, according to Pacific Bell.
- Potential impact of U.S. Occupational Health and Safety Administration (OSHA) regulations for work environments in the home;
- E-literacy requirements and training employees in technical aspects of telework before making investments in technology, plus a willingness by managers to allow employees to work remotely or “out-of-sight.”
- Homeowners insurance does not generally cover employer-provided home offices or equipment, so businesses must cover these items;
The Center for Digital Culture, a Web-based resource, is an initiative of U S WEST, Inc. The Center is committed to a progressive program of cooperative research into issues surrounding the social, political and economic impacts of emerging telecommunications technologies. For more information contact Sam Smith, executive director, (303) 965-2689, srsmit2@uswest.com.
From the Daily Regulatory Reporter, as originally reported by PRNewswire
