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Economic Benefits
Benefits Enjoyed by Companies Implementing Teleworking Programs
Keep costs down by having your workforce telecommute. Your current employees can successfully be sent to work from home
Pay only for the time you "use" as opposed to guaranteeing each employee 20, 30, or even 40 hours a week - even when they're on standby
Stop buying desks, computers, telephones, and other hard equipment
Stop paying health insurance, sick time, vacation time, and other benefits
Increase staff productivity
Increase staff efficiency
Increase staff loyalty
Avoid hefty pay raises to compensate for rising fuel costs
Obtain the talent you need at a more affordable price
Helps your company work more efficiently without losing productivity
Helps your business move from what was a manufacturing-based economy to the new service-based economy
Your company gets the expertise you need and otherwise may not be able to afford
Your workforce remains flexible to meet peaks and valleys that every company faces. No longer does your company need to maintain a rigid workforce which can drag you down before preventative actions can be taken. With a teleworking workforce, you can increase your workforce at the first sign of increased business on the horizon or decrease worker hours at the first sign of business decline or flat line.
The following statistics are courtesy of Undress4Success
• Improves employee satisfaction
People are sick of the rat race, eager to take control of their lives, and desperate to find a balance between work and life.
Two thirds of people want to work from home
36% would choose it over a pay raise
Gen Y’ers are particularly attracted to flexible work arrangements
80% of employees consider telework a job perk
• Reduce attrition
Losing a valued employee can cost an employer $10,000 to $30,000
Recruiting and training a new hire costs thousands
14% of Americans have changed jobs to shorten the commute
46% of companies that allow telework say it has reduced attrition
95% of employers say telework has a high impact on employee retention
• Reduces unscheduled absences
78% of people who call in sick, really aren’t. They do so because of family issues, personal needs, and stress.
Unscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion/yr for U.S. companies
Teleworkers typically continue to work when they’re sick (without infecting others)
Teleworkers return to work more quickly following surgery or medical issues
Flexible hours allow teleworkers to run errands or schedule appointments without losing a full day
• Increases productivity
Best Buy, British Telecom, Dow Chemical and many others show that teleworkers are 35-40% more productive
Businesses lose $600 billion a year in workplace distractions
Sun Microsystems’ experience suggests that employees spend 60% of the commuting time they save performing work for the company
• Saves employers money
IBM slashed real estate costs by $50 million
McKesson saves $2 million a year
Nortel estimates that they save $100,000 per employee they don’t have to relocate
Average real estate savings with full-time telework is $10,000 per employee per year
Partial telework can offer real estate savings by instituting an office hoteling program
Dow Chemical and Nortel save over 30% on non-real estate costs
Offers inexpensive compliance with ADA for disabled workers
Saves brick and mortar costs in industries where regulations or needs require local workers (e.g. healthcare, e-tail)
• Equalizes personalities and reduces potential for discrimination
Hiring sight unseen, as some all-virtual employers do, greatly reduces the potential for discrimination
It ensures that people are judged by what they do versus what they look like
Communications via focus groups, instant messaging, and the like equalizes personalities. No longer is the loudest voice the one that’s heard
• Cuts down on wasted meetings
Asynchronous communications allow people to communicate more efficiently
Web-based meetings are better planned and more apt to stay on message
• Increases employee empowerment
Remote work forces people to be more independent and self-directed
• Increases collaboration
Once telework technologies are in place, employees and contractors can work together without regard to logistics. This substantially increases collaboration options.
• Provides new employment opportunities for the un and under-employed
18 million Americans with some college education aren’t working
Less than a third of disabled Americans hold jobs (compared to 80% of rest of the labor force); 41 million disabled Americans are unemployed
24 million Americans work part time
• Expands the talent pool
Over 40% of employers are feeling the labor pinch; that will worsen as Boomers retire
Reduces geographic boundaries
Provides access to disabled workers
Offers alternative that would have otherwise kept parents and senior caregivers out of the workforce
Offers geographic, socioeconomic, and cultural diversity that would not otherwise be possible
• Slows the brain drain due to retiring Boomers
75% of retirees want to continue to work—but they want the flexibility to enjoy their retirement
• Reduces staffing redundancies and offers quick scale-up and scale-down options
Having access to a flexible at-home workforce allows call centers, airlines, and other to add and reduce staff quickly as needed.
The need to overstaff, just in case, is greatly reduced
24/7 worldwide coverage is easier to staff with home-based help
• Reduces traffic jams
Traffic jams rob the U.S. economy of $78 billion/year in productivity
They idle away almost 3 billion gallons of gas and accounts for 26 million extra tons of greenhouse gases
Every 1% reduction in vehicles yields a threefold reduction in congestion
• Prevents traffic accidents
Highway deaths cost $60 billion a year and result in 3 million lost workdays
More than a quarter of accidents occur during commuting hours
• Take the pressure off our crumbling transportation infrastructure
Crumbling transportation infrastructure - new roads are being built to meet needs of 10-20 years ago. Less than 6% of our cities roads have kept pace with demand over the past decade.
By 2025 we’ll need another 104 thousand additional lane miles - that will cost 530 billion
• Insures continuity of operations in the event of a disaster
Federal workers are required to telework to the maximum extent possible for this reason
Bird flu, terrorism, roadway problems, and weather-related disasters are all drivers
Three quarters of teleworkers say they could continue to work in the event of a disaster compared with just 28% of non-teleworkers
• Improves performance measurement systems
Drucker, Six Sigma, and management experts agree that goal setting and performance measurement is key to successful management
For telework to work, employees must be measured by what they do, not where or how they do it
• Offers access to grants and financial incentives
A number of states, including Virginia, Washington, and Connecticut, offer training and financial incentive for businesses that adopt telework.
• Saves employees money
Employees save on gas, clothes, food, parking, and in some cases, daycare (provided they can flex their hours to eliminate the need)
Average savings is $7,000 to $13,000/year per person
• Increases leisure time
Full time telework results in an extra 5 workweeks of free time a year—time that would have been spent commuting
The majority of teleworkers report they have more time with family, friends, and leisure.
• Reduces stress, illness, and injury
80% of diseases show that stress is a trigger. Because telework reduces stressful commutes and alleviates caregiver separation issues, teleworkers are likely to suffer fewer stress-related illnesses.
Teleworkers are exposed to fewer occupational and environmental hazards at home Teleworkers suffer fewer airborne illnesses because of lack of contact with sick co-workers
Teleworkers report being able to make more time for exercise
Anyone who has ever dieted knows it’s harder to stay the course when you dine out. Teleworkers often eat healthier meals and are less inclined to consume fast food lunches.
People are sick of the rat race, eager to take control of their lives, and desperate to find a balance between work and life.
Two thirds of people want to work from home
36% would choose it over a pay raise
Gen Y’ers are particularly attracted to flexible work arrangements
80% of employees consider telework a job perk
• Reduce attrition
Losing a valued employee can cost an employer $10,000 to $30,000
Recruiting and training a new hire costs thousands
14% of Americans have changed jobs to shorten the commute
46% of companies that allow telework say it has reduced attrition
95% of employers say telework has a high impact on employee retention
• Reduces unscheduled absences
78% of people who call in sick, really aren’t. They do so because of family issues, personal needs, and stress.
Unscheduled absences cost employers $1,800/employee per year; that adds up to $300 billion/yr for U.S. companies
Teleworkers typically continue to work when they’re sick (without infecting others)
Teleworkers return to work more quickly following surgery or medical issues
Flexible hours allow teleworkers to run errands or schedule appointments without losing a full day
• Increases productivity
Best Buy, British Telecom, Dow Chemical and many others show that teleworkers are 35-40% more productive
Businesses lose $600 billion a year in workplace distractions
Sun Microsystems’ experience suggests that employees spend 60% of the commuting time they save performing work for the company
• Saves employers money
IBM slashed real estate costs by $50 million
McKesson saves $2 million a year
Nortel estimates that they save $100,000 per employee they don’t have to relocate
Average real estate savings with full-time telework is $10,000 per employee per year
Partial telework can offer real estate savings by instituting an office hoteling program
Dow Chemical and Nortel save over 30% on non-real estate costs
Offers inexpensive compliance with ADA for disabled workers
Saves brick and mortar costs in industries where regulations or needs require local workers (e.g. healthcare, e-tail)
• Equalizes personalities and reduces potential for discrimination
Hiring sight unseen, as some all-virtual employers do, greatly reduces the potential for discrimination
It ensures that people are judged by what they do versus what they look like
Communications via focus groups, instant messaging, and the like equalizes personalities. No longer is the loudest voice the one that’s heard
• Cuts down on wasted meetings
Asynchronous communications allow people to communicate more efficiently
Web-based meetings are better planned and more apt to stay on message
• Increases employee empowerment
Remote work forces people to be more independent and self-directed
• Increases collaboration
Once telework technologies are in place, employees and contractors can work together without regard to logistics. This substantially increases collaboration options.
• Provides new employment opportunities for the un and under-employed
18 million Americans with some college education aren’t working
Less than a third of disabled Americans hold jobs (compared to 80% of rest of the labor force); 41 million disabled Americans are unemployed
24 million Americans work part time
• Expands the talent pool
Over 40% of employers are feeling the labor pinch; that will worsen as Boomers retire
Reduces geographic boundaries
Provides access to disabled workers
Offers alternative that would have otherwise kept parents and senior caregivers out of the workforce
Offers geographic, socioeconomic, and cultural diversity that would not otherwise be possible
• Slows the brain drain due to retiring Boomers
75% of retirees want to continue to work—but they want the flexibility to enjoy their retirement
• Reduces staffing redundancies and offers quick scale-up and scale-down options
Having access to a flexible at-home workforce allows call centers, airlines, and other to add and reduce staff quickly as needed.
The need to overstaff, just in case, is greatly reduced
24/7 worldwide coverage is easier to staff with home-based help
• Reduces traffic jams
Traffic jams rob the U.S. economy of $78 billion/year in productivity
They idle away almost 3 billion gallons of gas and accounts for 26 million extra tons of greenhouse gases
Every 1% reduction in vehicles yields a threefold reduction in congestion
• Prevents traffic accidents
Highway deaths cost $60 billion a year and result in 3 million lost workdays
More than a quarter of accidents occur during commuting hours
• Take the pressure off our crumbling transportation infrastructure
Crumbling transportation infrastructure - new roads are being built to meet needs of 10-20 years ago. Less than 6% of our cities roads have kept pace with demand over the past decade.
By 2025 we’ll need another 104 thousand additional lane miles - that will cost 530 billion
• Insures continuity of operations in the event of a disaster
Federal workers are required to telework to the maximum extent possible for this reason
Bird flu, terrorism, roadway problems, and weather-related disasters are all drivers
Three quarters of teleworkers say they could continue to work in the event of a disaster compared with just 28% of non-teleworkers
• Improves performance measurement systems
Drucker, Six Sigma, and management experts agree that goal setting and performance measurement is key to successful management
For telework to work, employees must be measured by what they do, not where or how they do it
• Offers access to grants and financial incentives
A number of states, including Virginia, Washington, and Connecticut, offer training and financial incentive for businesses that adopt telework.
• Saves employees money
Employees save on gas, clothes, food, parking, and in some cases, daycare (provided they can flex their hours to eliminate the need)
Average savings is $7,000 to $13,000/year per person
• Increases leisure time
Full time telework results in an extra 5 workweeks of free time a year—time that would have been spent commuting
The majority of teleworkers report they have more time with family, friends, and leisure.
• Reduces stress, illness, and injury
80% of diseases show that stress is a trigger. Because telework reduces stressful commutes and alleviates caregiver separation issues, teleworkers are likely to suffer fewer stress-related illnesses.
Teleworkers are exposed to fewer occupational and environmental hazards at home Teleworkers suffer fewer airborne illnesses because of lack of contact with sick co-workers
Teleworkers report being able to make more time for exercise
Anyone who has ever dieted knows it’s harder to stay the course when you dine out. Teleworkers often eat healthier meals and are less inclined to consume fast food lunches.
Contact your Team Double-Click® representative today for more information.
