Telework in the UK: The Bottom line benefits

Telework Research Network

The Shifting Nature of Work in the UK Bottom Line Benefits Kate Lister, Tom Harnish

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© 2011 Telework Research Network – All Rights Reserved


The Shifting Nature of Work in the UK Bottom Line Benefits




Introduction

‣  Definitions

‣  Sources

‣  Assumptions

‣  Variables

‣  Benefits



BACKGROUND


•  500 case studies, reports

•  Top virtual employers, experts, advocates, naysayers

•  Cited in Harvard Business Review, Wall Street Journal, etc.



SOURCES


•  UK government sources: Department for Work and Pensions, Department for Transport, Office of National Statistics, Department of Trade and Industry.

•  Flexibility.co.uk, Wisework Ltd, UK Telework Association, Enterprise Nation

•  AON, Kenexa Research, British Chambers of Commerce, Confederation of Business Industry, Chartered Institute of Personnel and Development, Equality and Human Rights Commission, Eurofound, European Union: European Social Fund, Forrester Research Inc, McKinsey Global Institute, Orange Future Enterprise Coalition, Royal Automobile Club Foundation, Trade Union Congress




GENERAL ASSUMPTIONS

‣  2 days per week ‣  50 per cent of workforce ‣  67 per cent willing ‣  75 per cent reduction in driving




VARIABLES ✓ Total # of employees ✓ Current # of Teleworkers ✓ Days/week of telework ✓ Addi9onal teleworkers ✓ Roundtrip miles to work ✓ Roundtrip commute in minutes ✓ Other employee Savings ✓ £ per litre of petrol ✓ % teleworker offices that are eliminated ✓ Cost/kWh of electricity ✓ Cost/office ✓ Cost of losing an employee ✓ Cost of unscheduled

absences ✓ % Reduc9on in absences ✓ % turnover ✓ % Reten9on ✓ Produc9vity ✓ Average annual earnings ✓ Other company savings ✓ % Who could work at home ✓ % Who want to telework ✓ % Daily travel reduc9on ✓ Parking, Food, Work Clothes ✓ Other Individual Savings/Year ✓ Day Care Costs



POLE




EMPLOYER BENEFITS


•  Productivity

•  Real Estate

•  Absenteeism

•  Retention

•  Other



PRODUCTIVITY


•  Fewer Interruptions

•  More Effective Time Management

•  Empowerment

•  Flexible Hours

•  More Hours




Annual Increase in Productivity!

Twice Weekly Workshifting 50 100 500 UK

Productivity Increase £102,713 £205,426 £1,027,130 £15.3 b



REAL ESTATE


•  Average office cost = £4,292/year (based on a 2007 government report) though London offices can run 2-3 times higher.

•  Reduction with 2 day a week home working = 15 per cent (based on a 2007 government report)

•  Electricity savings = 4,400 kWh per person, per year (based on two corroborating studies by Global Environment Technology Foundation and Sun Microsystems)

•  Extra home office energy is shown as a cost in the Employee Savings section


Annual Savings In Real Estate & Energy!


Real Estate & Energy Savings £27,810 £55,621 £278,106 £4.2 b

ABSENTEEISM


•  Experience less stress;

•  Less exposer to sick co-workers;

•  Exposed to fewer occupational and environmental hazards;

•  Avoid driving—the most dangerous part of the day;

•  Able to handle personal appointments without losing a full day’s work

•  More time for exercise.




Annual Savings Due To Reduced Absenteeism!


Absenteeism Savings £21,763 £43,525 £217,626 £3.2 b



RETENTION


•  Option to work at home top non-financial benefit desired by employees

•  Expands the talent pool beyond geographic boundaries

•  Provides access to disabled workers

•  Offers alternatives that would have otherwise kept parents and senior caregivers out of the full-time workforce

•  Appeals to aging workers




Annual Savings Due To Reduced Turnover!


Turnover Savings £1,926 £3,852 £19,262 £287 m

More realistic? £60,000 £120,000 £601,000 £9.0 b



OTHER


•  Improved Continuity of Operations

•  Improved community citizenship

•  Offers alternative to off-shoring

•  Avoids environmental sanctions

•  Avoids city access fees

•  Reduces overtime and overstaffing

•  Offers easier 24/7 global coverage

•  Reduces potential for discrimination

•  Weeds out weak players

•  Improves work-life balance

•  Avoids of local labor burnout

•  Equalizes personalities

•  Allows local knowledge hires



EMPLOYER CONCERNS


•  Control

•  Productivity

•  Technology

•  Security

•  Costs

•  Culture



EMPLOYER CONCERNS


•  Control!

•  Productivity

•  Technology

•  Security

•  Costs

•  Culture



EMPLOYER CONCERNS


•  Control

•  Productivity!

•  Technology

•  Security

•  Costs

•  Culture



EMPLOYER CONCERNS


•  Control

•  Productivity

•  Technology!

•  Security

•  Costs

•  Culture



EMPLOYER CONCERNS


•  Control

•  Productivity

•  Technology

•  Security!

•  Culture

EMPLOYER CONCERNS


•  Control

•  Productivity

•  Technology

•  Security

•  Culture!



POLE POLL




EMPLOYEE BENEFITS


•  Time

•  Money



TIME


•  54 minutes playing in traffic or riding public transportation

•  10 per cent spend more than 2 hours




Time Savings / Year (equivalent based on 8 hour workday)!

Scenario Low Avg. High

Time work days / year / person 8.5 11 21.5



MONEY - £


‣  Transportation

‣  Food

‣  Clothes




Workshifter Savings / Year by Mode of Travel!(including fuel where appropriate)!

Car Moto Bike Coach Rail Walk

Low £720 £627 £475 £437 £563 £220

Mid £1,049 £955 £803 £765 £1,280 £548

High £2,883 £1,307 £1,154 £1,117 £2,021 £900



AND MORE


•  Daycare / Eldercare

•  Serendipity purchases

•  Office gifts

•  Vehicle insurance

•  Other incidentals

•  Live in less expensive area



EMPLOYEE CONCERNS


•  Discipline

•  Space

•  Loneliness

•  Co-Worker Jealousy

•  Advancement

•  Overworking




•  Petroleum imports

•  Greenhouse gases

•  Traffic and accidents

•  Other

COMMUNITY BENEFITS




•  Save over £750 million a year in imported oil

•  Reduce oil imports by the equivalent of two-thirds of the UK’s Sub-Saharan African imports

PETROLEUM IMPORTS




•  Equivalent to taking 2.5 million cars off the road

•  Reduce transportation sector greenhouse gas by more than 4 per cent

GREENHOUSE GASES




•  90 per cent said poor reliability of road networks had reduced productivity

•  75 per cent complained that transport delays had a strong or moderate impact on the ability of their staff to get to work on time

•  75 per cent feel their staff arrived at work stressed

TRAFFIC AND ACCIDENTS



© Telework Research Network

•  Revitalize cities by reducing traffic—a disincentive to visitors

•  Improve emergency responsiveness

•  Provide portable work options for military families

•  Raise the standard of living in rural and disadvantaged areas

•  Reduce terrorism targets of opportunity

•  Lower healthcare cost

•  Provide highly educated talent access to jobs that maximize their potential

•  Promote inbound talent migration without adding to local population

•  Further reduce travel through widespread use of virtual technologies

Other Community Benefits



SUMMARY


Total Impact!


Employer £154,212 £308,425 £1,542,124 £23.0 b

Employee £52,448 £104,897 £524,483 £7.4 b

Community £14,216 £28,431 £142,156 £2.1 b

Overall £220,876! £441,753! £2,208,763! £32.5 b!



Kate Lister [email protected]

Tom Harnish [email protected] +01-760-703-0377 TeleworkResearchNetwork.com

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Telework in the UK: The Bottom line benefits

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