Telecommuting is one form of workplace flexibility that can be beneficial to both employees and employers alike. While many people can quickly name employee benefits such as improved work-life balance, shorter commute times, and increased satisfaction, there are just as many benefits for employers.
“Organizations began recognizing that there were business results as a result of having this flexible workplace. It was an attractive, ’employer-of-choice’ aspect. They were seeing more productivity. They were seeing the ability to recruit the best and brightest with this kind of flexibility. Very soon it then became a business imperative to be competitive.” Dayna Fellows told us in a recent BLR webinar. Potential business benefits include:
- Continuity of service or operational resilience
- Improved recruiting and retention
- Increased productivity and work quality
- Lower real estate costs
- Reduced traffic congestion and improved air quality
- Reduction of absenteeism and presenteeism
- Improved health and well-being of employees
7 Business Benefits of Telecommuting
Let’s look at each of these in more detail.
Continuity of service or operational resilience
Business continuity is probably the number one driver of telecommuting policies. Telecommuting allows for the business to run even when circumstances don’t allow the office to be open, such as during poor weather conditions.
“Being able to have that infrastructure where managers know how to manage people wherever they are, where people have their own equipment set up and they’re comfortable and they know how to manage themselves and they know how to collaborate working remotely—you’ve now got a network that you can deploy.” Fellows explained.
Improved recruiting and retention
Recruiting can be impacted by improving the organization’s reputation and also by increasing the talent pool. Implementing a telecommuting program sends a message regarding the organizational focus on work/life balance and shows that the organization values the employee and understands that flexibility makes a difference.
The talent pool can be increased in terms of geographic reach and other considerations. For example, employees who require ADA accommodation may be new candidates to consider, or those who have been injured. In terms of geography, having global access to talent can be a benefit. Some people may be a perfect fit but are unwilling to relocate. Telecommuting solves this problem. (It also decreases relocation costs for the employer).
Retention is increased because telecommuting:
- Gives employees some control.
- Sends a message of respect, trust, and accountability.
- Increases morale.
- Increases loyalty.
- Offers flexibility, which is critical to some groups such as retirees.
- Increases internal referrals (every employee is a potential recruiter).
Increased productivity and work quality
“Most teleworkers will tell you – and most organizations that have successful programs will tell you – that productivity goes up.” Fellows confirmed. Productivity increases because employees are:
- Able to start work immediately with no commute time
- Comfortable
- Away from the noise and distractions and casual conversations
Telecommuting also:
- Encourages work planning and collaboration
- Reduces commuting stress, delays, and costs
- Increases focus, energy and work quality
- Reduces distractions and interruptions
- Expands accessibility for customers
Lower real estate costs
Behind salary, real estate is often the biggest expense for employers. This can be significantly reduced with even a partial telecommuting program. For example, if you can increase office sharing by having people telecommute a few days a week, they can come in and share the office space on the other days. This reduces real estate and overhead costs, which in turn enables agility and growth. It can also reduce parking requirements and transportation subsidy expenses.
You can also have people telecommute while the company is in a transition period, such as when moving office locations.
Reduced traffic congestion and improved air quality
Air quality was an early driver of telecommuting programs. Allowing people to telecommute gets more people off the road. This can be seen as a sustainability or “green” measure, which speaks not only to corporate responsibility but can also be a selling point for customers or new employees.
Reduction of absenteeism and presenteeism
There is definitive, measurable savings in reduced absenteeism. This is partially because employees have more flexibility for appointments and the like. Telecommuting encourages flexibility and accountability. By giving employees flexibility to schedule things as needed, it is more efficient than using leave or driving back and forth.
It can also reduce presenteeism. Presenteeism refers to employees coming to work while sick, which reduces productivity and can spread illness. While telecommuting is not a substitute for sick leave, it can reduce the spread of illnesses that would be spread when employees come into work when they’re not ill enough to want to “waste” a sick day.
Improved health and well-being of employees
A telecommuting program shows concern for the health and well-being of employees. In turn, healthier employees incur fewer insurance costs and have fewer absences, which impacts the company’s bottom line.
For more information on the business benefits of telecommuting programs, order the webinar recording of “Flexible Work Scheduling and Telecommuting: Practical Strategies for a Productive Workforce.” To register for a future webinar, visit http://store.blr.com/events/webinars.
As founder and president of WorkLife Performance, Inc., Dayna Fellows offers more than 30 years of experience in professional development, performance management, and work/life programs and policies, with particular focus on managing telework and virtual teams. She is a national spokesperson on the challenges and rewards of a flexible workplace.