The Uncertain Telework Trend
Maybe telecommuting isn’t the wave of the future after all. Various experts have predicted that the number of teleworkers will double by the end of the decade, but the proportion of U.S. firms offering telecommuting has remained fairly flat recently. Of course, it’s far too early to say telecommuting is fizzling. Many factors, from new technologies to rising worker demand, may yet radically boost the number of telecommuters, presenting both challenges and opportunities for employers.
A survey from the Society for Human Resource Management shows that the percentage of U.S. companies offering telecommuting on a full-time (19%) or part-time (36%) basis in 2004 increased from 2003 but was still less than reported in 2002. This could be a leveling off of the trend in the U.S., or it may be just a temporary blip due to the economic slowdown.
The long-term trend has been mostly upward. In the U.S. alone, the number of teleworkers rose from 11.6 million to 23.5 million between 1997 and 2003, according to the International Telework Association & Council. And various market forecasters – including the Yankee Group, Gartner Group and Nielson’s – project that the number will rise to about 50 million by 2010, reports THE FUTURIST magazine.
“Similar patterns of growth are expected in Europe, Canada, Japan, and elsewhere around the world,” writes Joseph N. Pelton, director of the Space and Advanced Communications Research Institute at George Washington University. But there’s a lot of variation even in a developed region such as Europe, with countries in the north clearly ahead of the game. In 2002, the Netherlands led in the proportion of employees who were home-based teleworkers, at 20.6%. Denmark, Finland and Sweden also had high percentages of teleworkers. On the other hand, Germany had just 7.9%, France 4.4%, Italy 2.5% and Spain 2.3%.
Telecommuting will continue to increase if employees have anything to say about it. “Time has become worth more than money to some employees,” said WorldatWork’s Kathie Lingle, director of the Alliance for Work-Life Progress. Employees of all ages like teleworking because it reduces commuting time and makes it easier for them to balance family and personal needs with work requirements.
Some employers, too, see the benefits of telework, arguing that it increases productivity, since workers can schedule around peak performance times and often work longer hours. Telework can also reduce absenteeism, turnover and office costs while raising employee satisfaction and retention levels. And with access to a broader labor market, labor shortages may be eased and community dependence on government programs may be reduced.
But telework holds challenges for workers and employers alike. Some teleworkers worry about decreased visibility at work, while others are more concerned about the loss of social interaction. For some, the household poses more distractions than the work environment, and the blurring of boundaries between work life and home life can become difficult and stressful. Another problem is that employees who don’t work face to face can have a more difficult time sharing knowledge with one another, affecting quality and productivity.
Employers must also deal with the challenges of managing teleworkers while still complying with safety and overtime regulations, and the increased reliance on the connectivity infrastructure makes technical issues even more critical. Robert Moskowitz, president of the American Telework Association, states that telework “forces IT departments to be significantly more flexible and to subordinate technological simplicity to organizational efficiency.”
Security can become an issue, too. Home-based employees may be inclined to leave computers unattended, jot down passwords or even download company files. But Joe Roitz, AT&T’s telework director, insists, “A home is as secure as an office, if not more secure.”
Joseph Pelton argues that corporate centralization is in itself a risky practice and that our future demands a shift away from megacities to decentralized technology-driven “telecities.” He warns that the overcentralization of government properties, utilities, high-rise corporate structures and transportation hubs creates a vulnerability to terrorism, natural disasters and human error, while telecities can reduce pollution, energy consumption and urban property costs as well as increase the ability to cope with security threats.
One organization reaping multiple advantages from allowing flexibility in work arrangements is British Telecom (BT). The telecommunications company estimates saving £42 million on rents and rates in London through telecommuting and “hot desking” arrangements. BT estimates that teleworkers process 20% more business than their office-based counterparts. In addition, BT boasts of a low absenteeism rate of 3% compared with the 8.5% average rate in the telecommunications industry.
Telecommuting itself continues to evolve. Moskowitz notes that the “whole notion of telecommuting has become blurred as more and more employees begin to perform company-paid activities on trains, planes and boats, at home, in customer offices, even in coffee shops.” And the 24/7 work culture promises more of the same – both in the U.S. and abroad.
Documents used in the preparation of this TrendWatcher include:
Bureau of National Affairs, Inc. Workforce Strategies: Evaluating Telework: Policy, Infrastructure and Training Considerations. June 2004.
Carlson, Leah. “Overcoming Telework’s Tech Challenges.” Employee Benefit News, June 1, 2004 , pp. 53, 55.
Employment Policy Foundation. The Balancing Act. Washington , DC : Employment Policy Foundation, March 11, 2004 .
“Flexible Working Helps BT Combat Staff Problems.” PersonnelToday.com, Internet [http://www.i4cp.com/LuIP5Z]. October 2, 2003.
“Outlook 2005.” THE FUTURIST. ProQuest. November/December 2004, p. A1.
Parus, Barbara. “Pump Up Your Flexibility Quotient.” Workspan, August 2004, pp. 47-53.
Pelton, Joseph N. “The Rise of Telecities: Decentralizing the Global Society.” THE FUTURIST, January-February 2004, pp. 28-33.
Peters, Pascale and Laura den Dulk. “Cross-Cultural Differences in Managers’ Support for Home-based Telework: A Theoretical Elaboration.” International Journal of Cross Cultural Management [ London ], December 2003, pp. 329-347.
Schramm, Jennifer. SHRM 2004-2005 Workplace Forecast: A Strategic Outlook. June 2004.
Society for Human Resource Management. 2004 Benefits Survey Report. Alexandria, VA: SHRM Research, June 2004.
“Telework.” Workforce Management, January 2004, p. 72.
A survey from the Society for Human Resource Management shows that the percentage of U.S. companies offering telecommuting on a full-time (19%) or part-time (36%) basis in 2004 increased from 2003 but was still less than reported in 2002. This could be a leveling off of the trend in the U.S., or it may be just a temporary blip due to the economic slowdown.
The long-term trend has been mostly upward. In the U.S. alone, the number of teleworkers rose from 11.6 million to 23.5 million between 1997 and 2003, according to the International Telework Association & Council. And various market forecasters – including the Yankee Group, Gartner Group and Nielson’s – project that the number will rise to about 50 million by 2010, reports THE FUTURIST magazine.
“Similar patterns of growth are expected in Europe, Canada, Japan, and elsewhere around the world,” writes Joseph N. Pelton, director of the Space and Advanced Communications Research Institute at George Washington University. But there’s a lot of variation even in a developed region such as Europe, with countries in the north clearly ahead of the game. In 2002, the Netherlands led in the proportion of employees who were home-based teleworkers, at 20.6%. Denmark, Finland and Sweden also had high percentages of teleworkers. On the other hand, Germany had just 7.9%, France 4.4%, Italy 2.5% and Spain 2.3%.
Telecommuting will continue to increase if employees have anything to say about it. “Time has become worth more than money to some employees,” said WorldatWork’s Kathie Lingle, director of the Alliance for Work-Life Progress. Employees of all ages like teleworking because it reduces commuting time and makes it easier for them to balance family and personal needs with work requirements.
Some employers, too, see the benefits of telework, arguing that it increases productivity, since workers can schedule around peak performance times and often work longer hours. Telework can also reduce absenteeism, turnover and office costs while raising employee satisfaction and retention levels. And with access to a broader labor market, labor shortages may be eased and community dependence on government programs may be reduced.
But telework holds challenges for workers and employers alike. Some teleworkers worry about decreased visibility at work, while others are more concerned about the loss of social interaction. For some, the household poses more distractions than the work environment, and the blurring of boundaries between work life and home life can become difficult and stressful. Another problem is that employees who don’t work face to face can have a more difficult time sharing knowledge with one another, affecting quality and productivity.
Employers must also deal with the challenges of managing teleworkers while still complying with safety and overtime regulations, and the increased reliance on the connectivity infrastructure makes technical issues even more critical. Robert Moskowitz, president of the American Telework Association, states that telework “forces IT departments to be significantly more flexible and to subordinate technological simplicity to organizational efficiency.”
Security can become an issue, too. Home-based employees may be inclined to leave computers unattended, jot down passwords or even download company files. But Joe Roitz, AT&T’s telework director, insists, “A home is as secure as an office, if not more secure.”
Joseph Pelton argues that corporate centralization is in itself a risky practice and that our future demands a shift away from megacities to decentralized technology-driven “telecities.” He warns that the overcentralization of government properties, utilities, high-rise corporate structures and transportation hubs creates a vulnerability to terrorism, natural disasters and human error, while telecities can reduce pollution, energy consumption and urban property costs as well as increase the ability to cope with security threats.
One organization reaping multiple advantages from allowing flexibility in work arrangements is British Telecom (BT). The telecommunications company estimates saving £42 million on rents and rates in London through telecommuting and “hot desking” arrangements. BT estimates that teleworkers process 20% more business than their office-based counterparts. In addition, BT boasts of a low absenteeism rate of 3% compared with the 8.5% average rate in the telecommunications industry.
Telecommuting itself continues to evolve. Moskowitz notes that the “whole notion of telecommuting has become blurred as more and more employees begin to perform company-paid activities on trains, planes and boats, at home, in customer offices, even in coffee shops.” And the 24/7 work culture promises more of the same – both in the U.S. and abroad.
Documents used in the preparation of this TrendWatcher include:
Bureau of National Affairs, Inc. Workforce Strategies: Evaluating Telework: Policy, Infrastructure and Training Considerations. June 2004.
Carlson, Leah. “Overcoming Telework’s Tech Challenges.” Employee Benefit News, June 1, 2004 , pp. 53, 55.
Employment Policy Foundation. The Balancing Act. Washington , DC : Employment Policy Foundation, March 11, 2004 .
“Flexible Working Helps BT Combat Staff Problems.” PersonnelToday.com, Internet [http://www.i4cp.com/LuIP5Z]. October 2, 2003.
“Outlook 2005.” THE FUTURIST. ProQuest. November/December 2004, p. A1.
Parus, Barbara. “Pump Up Your Flexibility Quotient.” Workspan, August 2004, pp. 47-53.
Pelton, Joseph N. “The Rise of Telecities: Decentralizing the Global Society.” THE FUTURIST, January-February 2004, pp. 28-33.
Peters, Pascale and Laura den Dulk. “Cross-Cultural Differences in Managers’ Support for Home-based Telework: A Theoretical Elaboration.” International Journal of Cross Cultural Management [ London ], December 2003, pp. 329-347.
Schramm, Jennifer. SHRM 2004-2005 Workplace Forecast: A Strategic Outlook. June 2004.
Society for Human Resource Management. 2004 Benefits Survey Report. Alexandria, VA: SHRM Research, June 2004.
“Telework.” Workforce Management, January 2004, p. 72.