Benefits of Telecommuting

1. Benefits of Telecommuting Matthew Paradise April 16, 2016

2. Overview Introduction Trends in telecommuting Benefits for individuals Benefits for organizations Challenges Discussion Conclusion

3. Introduction

4. Introduction Definition- Working from home through the use of technology Not possible for all industries, companies, or individuals About 80% desire to telecommute Means to reach the most qualified individuals Business strategy, not a benefit or perk Over 400% increase since 1995

5. Trends in Telecommuting

6. Demographics and Stereotypes In 1995, about 9% said they telecommute In 2015, 37% said they telecommute In 2014, 6.5% increase- largest since recession About 80% desire to telecommute About 50% of jobs are compatible Young workers, baby boomers, disabled, etc., all desire to telecommute for varying reasons Young, lazy, not motivated, possibly less educated

7. Cont’d 49 years old College educated Salaried, non-union, management or professional Company of more than 100 employees Average $58,000 per year 75% make $65,000 or more More likely to love their job

8. Industries Medical and Health Customer Service Sales Computer and IT Administrative Education Marketing

9. Cont’d Almost 25% of job opening are medical and health related Information specialists, medical coding, pharmaceutical reps Increase of about 80% in local government, 130% in state government, and 425% in federal government in past 10 years 5 year plan to implement: $30 million Lost productivity in 1 day shutdown in Washington D.C: $100 million

10. Companies Top medical and health: United Health Group, Aetna, and Humana Top customer service: Amazon, Teletech, Convergys Self-employed not included in statistics Self-employment declining Specific companies analyzed: Xerox and Aetna

11. Cont’d Xerox: ranks 16 th in top 100 offering telecommuting Started in 1960’s Employee’s must take self-assessment About 11% telecommute 100% of the time (About 8,000) Aetna: ranks 18 th in top 100 offering telecommuting 20 year history 43% of 48,000 employees Look at individual, job function, and home environment

12. Benefits for individuals

13. Increased Flexibility Baby Boomers Generation X Millennial's Disabled Mothers

14. Cont’d Birth of a child Serious injury Serious illness Caring for a loved one

15. Increased Time/ Decreased Costs Gain back average of 2-3 weeks per year 2-3 years over an entire career Save $2,000-7,000 per year in travel costs Save after school and eldercare Could qualify for home office tax break Put $700 billion back into economy- 4% of current GDP

16. Cont’d Work- Life balance More time with family Raise standard of living More disposable income Vacation more freely Can get work done from anywhere

17. Increased Job Satisfaction Love, Like, Neutral, Dislike, Hate Ambition Work ethic 87% more likely to love their jobs

18. Cont’d Love 45% to 24% Dislike or Hate 2% to 7% Being average is terrible 71% to 65% Hits deadlines no matter what 87% to 76%

19. Benefits for organizations

20. Increased Output/ Reduced Turnover Higher job satisfaction Higher output Reduced turnover More, less, or just as productive 56%, 18%, 24% Work longer hours

21. Cont’d Nicholas Bloom- Stanford Professor Ctrip - China’s largest travel agency 9.5% more hours, 13% more production Hoteling- U.S Patent and Trademark Office Home 4 days, office 1 day 66.3 more hours per year, 4% more applications

22. Cont’d Mary Noonan- University of Iowa Jennifer Glass- University of Texas Worked more than 40 hours 78% to 27% 30% worked more than 50 hours per week Managerial or Sales- 82% to 33%

23. Increased Capacity/ Decreased Costs Several employees can share a single desk Typical business saves $11,000 per employee per year Over $500 billion in U.S alone Government 1 day shutdown costs $100 million Hoteling American Express, PriceWaterhouseCoopers , GlaxoSmithKline New York City, London, Singapore

24. Cont’d U.S Patent and Trademark Office Saves $19.88 million from hoteling program annually $15.88 million in saved real estate costs Save $1,710 in costs first year, $3,380 in each subsequent year Generates $13,373 in revenue over 14 years

25. Decreased Environmental Footprint Emissions Oil consumption Wear and tear on highways Crumbling infrastructure Traffic related injuries

26. Cont’d Save 37% of oil imports 640 million barrels annually Reduce emissions by 54 million tons per year Take entire New York workforce off the road 90,000 traffic related injuries and deaths $10 billion in savings

27. Cont’d Xerox 92 million miles, 4.6 million gallons of gas $10 million in savings by the company Aetna 127 million miles, 5.3 million gallons of gas, 46,700 tons of greenhouse gases Reduced overall costs by 15-25% Dell $12 million in savings, 6,700 tons of greenhouse gases

28. Challenges

29. Challenges for Individuals Most desire to telecommute, but not exclusively Home and office balance Feel lonely, weaker relationships More likely to be passed over for promotions “Out of sight, out of mind”

30. Cont’d 15-20 hours per week ideal Far more or far less leads to lower satisfaction Work longer hours Home and work life could become blurred Less likely to work a traditional schedule

31. Challenges for Organizations Big initial investment Supervisor challenges Difficult to keep track of employees Monitoring performance Performance reviews Additional training Face to face time limited

32. Discussion

33. Advantages Individuals Increased flexibility, time, and job satisfaction Decreased costs Increased quality of life More disposable income More family time Work/Life balance

34. Cont’d Organizations Increased production Reduced costs and turnover Growth potential Expanded recruiting Easier to expand

35. Disadvantages Individuals Not all jobs compatible Don’t want to telework exclusively Passed over for promotions Weaker relationships Longer hours

36. Cont’d Organizations Steep startup costs Risk Supervisor challenges Training

37. Opportunities Impact on economy Larger salaries, more disposable income, higher quality of life Expansion, R&D Finding best qualified individuals Lower prices

38. Cont’d “Greener” Reduced wear and tear Rebuild infrastructure Ability to catch up

39. Conclusion

40. Conclusion Major strides in past 20 years 80% of workforce desires to telecommute Organizations being proactive Medical/Health and customer service especially proactive Major impact on individuals, organizations, economy, and environment

41. Outlook Continued desire Continued growth Organizations becoming more willing Too big to ignore Next 20 years potentially as impactful as past 20 years

42. Questions?