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With telework, it pays to be formal

Businesses miss out on economic savings with informal telework programs.

Telework Beat By Ann Bednarz, Network World
July 04, 2005 12:04 AM ET
Ann Bednarz
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The number of employees working from home continues to rise. Research firm Gartner estimates 12 million U.S. employees today spend at least 8 hours each week working from home, up from 5.7 million in 2000.

But has corporate acceptance and implementation of formal telework programs grown accordingly over the last few years? I asked Bob Smith, executive director at ITAC, that question and was surprised by his answer.

"I honestly can't say there's been a big change," says Smith, who joined ITAC in early 2002. ITAC - formerly known as the International Telework Association and Council - today is the telework advisory group for WorldatWork, an association for HR professionals.

"There are clearly more people working in a telework or mobile work environment, but that doesn't necessarily mean it's being done in a structured and organized way," Smith says.

On the plus side, more businesses today offer employees the flexibility to work from home when there's a need for it. However businesses are missing out on economic savings by not formalizing the effort, he says. For example, with a formal telework program in place, companies can begin to take advantage of opportunities to reduce the amount of office space they lease.

Telework programs also can help companies deal with changing workforce currents. Job security isn't what it used to be, and prospective hires may be less willing to relocate for a new job. Offering a telework option can help secure remote talent, as well as expand the geographic field of job candidates, Smith says.

In addition, the workforce is aging -- there's concern that in the next five to 10 years there will be a greater number of people retiring than there are entering the workforce, Smith says. Providing experienced, near-retirement-age employees the opportunity to work from home may help companies entice valued employees to stay on the job a bit longer. "Telework is a great way to stall retirement," he says.

Meanwhile, young people just joining the workforce are accustomed to the flexibility that technology affords: "The concept of working from anywhere is ingrained in the way they do things," Smith says. The companies that espouse similar views are going to attract the best and brightest new recruits, he says.

"When properly implemented, there can be very tangible economic benefits to adopting a telework program," Smith says. "In our opinion, there are still too many companies and government agencies haven't taken it to the full extent that they could."

That said, there are strong examples of companies that have active, rewarding telework programs in place, he says. Technology companies, in particular, stand out. AT&T, Cisco and IBM are among the more high-profile examples of companies with successful telework programs.

One of the things that distinguishes a strong telework program is solid management. Learning to effectively manage an employee who isn't seen on a regular basis requires some rethinking of old styles, Smith says.

"There should be a system in place to manage and evaluate the performance of people whether they're 10 feet or 1,000 miles away from you. It's all about identifying what people need to be doing and when, and measuring their accomplishments accordingly."

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