More Telecommuting or Less? Quiz

PDF page 306: The term telecommuting emerged in the 1970s to describe the practice of working at a specific location, whether the employee’s home or an alternate office, to reduce commuting time to a centrally located office space or store. “Telework” was greatly facilitated by new telecommunications technology, including the Internet, e-mail, and mobile phones. Today, telecommuting means any mode of working at a remote location (home or other space) by virtue of an electronic connection and/or telephone and encompasses a variety of employment types, from gig assignments to part-time contract work to traditional full-time employment. The most recent Census data reveal that almost four million U.S. employees skip the commute for at least part of each week, and according to a 2012 poll, worldwide, one in five workers telecommutes frequently, with

PDF page 306: The term telecommuting emerged in the 1970s to describe the practice of working at a specific location, whether the employee’s home or an alternate office, to reduce commuting time to a centrally located office space or store. “Telework” was greatly facilitated by new telecommunications technology, including the Internet, e-mail, and mobile phones. Today, telecommuting means any mode of working at a remote location (home or other space) by virtue of an electronic connection and/or telephone and encompasses a variety of employment types, from gig assignments to part-time contract work to traditional full-time employment. The most recent Census data reveal that almost four million U.S. employees skip the commute for at least part of each week, and according to a 2012 poll, worldwide, one in five workers telecommutes frequently, with

PDF page 306: The term telecommuting emerged in the 1970s to describe the practice of working at a specific location, whether the employee’s home or an alternate office, to reduce commuting time to a centrally located office space or store. “Telework” was greatly facilitated by new telecommunications technology, including the Internet, e-mail, and mobile phones. Today, telecommuting means any mode of working at a remote location (home or other space) by virtue of an electronic connection and/or telephone and encompasses a variety of employment types, from gig assignments to part-time contract work to traditional full-time employment. The most recent Census data reveal that almost four million U.S. employees skip the commute for at least part of each week, and according to a 2012 poll, worldwide, one in five workers telecommutes frequently, with

PDF page 306: approximately 10 percent working from home every day. Figure 10.2 depicts the growth in telecommuting in the United States, China, India, France, Germany, and the United Kingdom. Clearly, employers are embracing

PDF page 307: cars off the road. Fewer workers commuting equals less crowding on public transportation. Fewer cars mean less air pollution as well. The average U.S. employee (who commutes 30 miles and 60 minutes per day) will save more than $1000 on gas per year by telecommuting (along with associated costs of parking and vehicle

PDF page 307: upkeep and insurance). Remote workers can continue to do their jobs despite weather conditions that impede travel. They are not exposed to sick coworkers’ germs and may take fewer sick days (which sometimes translates to fewer sick days company-wide). Remote employees are also seldom late for work or early to leave when their workday starts at home. More broadly, there is a good deal of evidence suggesting that telecommuting has beneficial effects on worker productivity. For example, a call-center study reported in the Harvard Business Review found that telecommuting employees made 13.5 percent more calls, resigned their positions at only half the usual rate,

PDF page 307: found 48 percent faster turnaround times for issuing permits and 5 percent more calls for telecommuters. Furthermore, studies of JD Edwards teleworkers found them to be 20 to 25 percent more productive than their office colleagues; American Express employees who worked from home were 43 percent more productive than

PDF page 307: found 48 percent faster turnaround times for issuing permits and 5 percent more calls for telecommuters. Furthermore, studies of JD Edwards teleworkers found them to be 20 to 25 percent more productive than their office colleagues; American Express employees who worked from home were 43 percent more productive than

PDF page 308: office to work with their colleagues face to face. IBM, Aetna, and Bank of America followed her lead, citing a

PDF page 308: In 2013, Yahoo’s then–chief executive officer (CEO), Marissa Mayer, ended the company’s work-at-home policy, contending that the change would boost communication and collaboration by bringing people back to the

PDF page 308: shown greater flexibility in allowing some employees to once again work at home. But recent research does reveal that employees collaborate more creatively when they meet to discuss projects face to face. This finding has important implications for firms dependent on research and development for their future growth. In fact, Steve Jobs designed the Pixar facility to increase the likelihood of conversations that would promote idea

PDF page 307: experience less absenteeism overall. It may also be easier to collaborate when not sharing a limited amount of space (such as in a cubicle forest), and people may be more willing to share resources with one another when the total number of workers present at the facility is reduced. Another point is that there may be less chatting and gossip among remote workers who are not in daily contact with each other or their colleagues. Employers may be attracted to telecommuting for other reasons. Having remote employees can reduce office-

PDF page 307: space costs. In fact, a company can consider expanding even when there is no available real estate or capital to enlarge or improve the physical facilities. Companies that hire remote employees can also widen their pool