Virtual Workforce Realities. Inside this white paper:

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1 Virtual Workforce Realities Inside this white paper: Discover how virtual environments can connect dispersed employees and improve communication and employee engagement. Plus, learn how companies are using virtual solutions to solve business challenges and improve organizational effectiveness. Overview: Virtual environments are becoming increasingly popular with organizations for a variety of reasons, including connecting remote employees and audiences, reducing costs and improving sustainability. According to Market Research Media Limited, virtual events will realize a compound annual growth rate of 56 percent through At the same time, technology researcher IDC predicts that more than 75 percent of the U.S. workforce will be mobile in some respect by i With the inherent ability to link dispersed workforces and enhance communication, virtual solutions are especially beneficial for improving employee connectivity and strengthening engagement. Practices and Benefits of Virtual Solutions As virtual workplace solutions continue to grow exponentially, organizations have an unparalleled opportunity to further innovate and expand reach by leveraging virtual communities to maximize the impact of their communication tools and events. In a 2009 poll of more than 750 business executives, Forbes asked business leaders about which meeting format they preferred. Here are the top reasons they gave for favoring technology-enabled meetings: 1. They save time (92%). 2. They save money (88%). 3. They offer more flexibility in location and timing (76%). 4. Virtual meetings allow the executives to multitask (64%). 5. They increase productivity (55%). 6. They offer the ability to archive sessions for later viewing (49%). 7. It's easier to follow data-heavy presentations (32%). 8. There's less peer pressure (16%). ii In reality, organizations are using virtual technology to attain: An informed global organization and message continuity Cost savings with reductions in travel expenses, event production, etc. Increased participation with the convenience of access from anywhere The ability to record and play back a meeting or event Increased productivity with reductions in travel time Improved training opportunities with broader reach and access to materials online.

2 Virtual solutions can be used in a variety of ways, including virtual workplaces, where employees essentially telecommute; virtual events and meetings; virtual training centers and virtual presentations. One of the best-known virtual event producers is Cisco Systems. It uses virtual technology as part of its annual sales and partner conferences, as well for internal global workforce events. In 2010, the Cisco's Services organization was looking for a way to expand effective communication and collaboration opportunities to the broader organization. To communicate the fiscal year objectives during the annual Cisco Service Summit, Cisco hosted a 100 percent virtual event that included a broadcast of a live main stage session to conference attendees. Cisco executives, including CEO John Chambers, took the stage during a 150-minute main stage presentation to convey priorities and objectives to the organization. The event also ran a series of scheduled chats to allow attendees to provide feedback and network with each other, and hosted a virtual exhibit that included a number of booths and allowed attendees to chat with members of the Services organization, as well as browse and download documents, case studies and related content. The Summit exceeded the expectations of both attendees and organizers and effectively accomplished all of the organization s goals: Improving cross-functional knowledge of the organization s initiatives and priorities; Articulating the organization s role in Cisco s key strategies and solutions; Ensuring alignment and consistency with Cisco s corporate priorities and messaging; Increasing team optimism about future growth opportunities. The virtual event was well received by the Services organization, some of whom were already anticipating the next virtual event. And, to top things off, the event was selected as the winner of the coveted Collaboration Across Cisco award, presented by John Chambers. USMotivation, who offers virtual solutions as a core service, uses a virtual platform as a communication, education and documentation tool for its employees. USM s platform, named vhive, consists of areas for live and recorded presentations, the President s blog, a suggestion box, the company s recognition and rewards program, department and industry resources, a gaming section and a chat lounge. To encourage use of the platform, USM established an incentive program in which employees are awarded badges for participation. The platform has allowed the company to centralize information and increase employee engagement. It s especially helpful for remote employees and employees on the road. Since it s a web-based platform, employees can access it anytime, anywhere.

3 Our clients have seen great success with our Virtual Solution services, said Tina Weede, President of USMotivation. From product knowledge to employee training, it s proved to be a valuable tool that can enhance communication and engagement. We were thrilled to use this technology to launch our own internal platform, which has made it easier for associates to access centralized information and communicate with peers. Virtual Technology s Impact on Productivity, Satisfaction and Engagement In another example from virtual pioneer Cisco, the company presented 200 separate sessions and 88 hours of consecutive content over a three-day period, including product and service showcases, live executive sessions, and sales recognition events that saved more than 90 percent of the costs spent on a typical physical gathering, eliminated 211 million air miles, 334,000 hours of travel time and averted 84,400 metric tons of greenhouse gases. iii Although the degree of increased productivity varies with different organizations, increases in employee productivity can be up to 40 percent iv and increases in employee retention can be as high as 50 percent. v A World at Work survey of more than 600 human resources professionals indicated 85 percent of respondents reported their organization s virtual work program had a moderate or high impact on employee retention. vi Informed employees are engaged employees. Global organizations can use virtual technology to communicate in a variety of ways, including relaying human resources information, online town hall meetings, weekly or monthly status meetings, brainstorming, etc. Employees can participate from anywhere and the presentation or information can be stored electronically and accessed afterward. But do they like it? In a 2007 Society of Human Resource Management (SHRM) study, researchers examined an organization that made a change from a traditional office setting to one that had both traditional and virtual employees to see if working virtually would negatively affect communications and interpersonal interactions a long held presumption. As the study reports, Surprisingly, findings showed that virtual employees experienced higher levels of communication satisfaction than traditional workers on all factors, including personal feedback, relationships with supervisors and horizontal and informal communication. vii Perhaps one of the most important aspects of mobile and remote work arrangements is the effect they can have on employee engagement. Remote employees generally report a high degree of satisfaction with telecommuting, including greater work/life flexibility. In addition, they report being able to more quickly master new technologies used in daily work viii.

4 According to Telework Research Network, a Carlsbad, California-based think tank, letting employees work from home 50 percent of the time can save employers $10,000 per year per person in increased productivity, reduced facilities costs, lower absenteeism and less turnover not to mention the advantages of being able to quickly adjust the workforce in response to business conditions. ix The Engagement Challenge Despite its many benefits, the increase in virtual workforces presents challenges in keeping employees engaged and connected to the company. The loss of a sense of community, human connectivity and belongingness among employees can pose a threat to engagement efforts. Research by The Forum: Business Results Through People on the Human Value Connection finds personal relationships and a sense of community contribute to well-being and trust among others, which, in turn, enhance productivity and profitability. x Strong connections also lead to greater employee loyalty and lower turnover. So, how do organizations replicate this virtually? The Forum s research on ways organizations can counteract the challenges of the virtual workplace, and simultaneously foster the development of social connectivity, produced the following findings: xi Engaging remote employees must be part of a bigger virtual employee management strategy supported by top management. Management must prioritize virtual employees and provide support that overcomes the challenges of keeping them part of the organizational community. Engaging virtual employees requires technology platforms that enable the people-oriented aspects of work. The companies that best handle virtual employees also have technologies in place to serve the human interest. That is, they provide mechanisms for interpersonal connectivity, social gatherings, and sustained relationship building over time and distance. Some face-to-face contact with virtual employees is necessary. Quite simply, the connectivity developed through in-person meetings establishes an interpersonal foundation that facilitates virtual work. The quality of talent supersedes employee location. Employers prefer to access the best talent possible, and are willing to allow new hires to work remotely if that s what it takes to hire them. An organization that loses, or fails to hire, an employee because of location runs the risk that the employee leaving for a competitor.

5 Smaller companies struggle more with engaging virtual employees than larger ones. Larger companies interviewed by The Forum have formal processes in place for engaging and motivating virtual employees, with sophisticated technology platforms, formal training processes, and multiple locations worldwide that facilitate engaging virtual employees. In contrast, smaller companies and agencies usually have no specific process set up for virtual employee engagement. Integrate virtual employee engagement with internal branding and organizational culture. A primary objective should be to immerse virtual employees in the organization s culture. Some companies do this through an extensive orientation in which employees hired to work virtually are put though an on-site orientation, often featuring rotations through many departments in order to internalize the culture. Best Practices for Implementing Virtual Technology The following best practices are attributed to US Motivation s virtual technology partner, InXPO. 1. Identify and document your high-level goals. Determine what your virtual program seeks to accomplish. Be quantitative versus qualitative, so the achievement of your goals can be based on measurable parameters. Be sure to document in writing, and share your goals. 2. Identify and confirm your program s executive sponsor (e.g. CEO, CMO, President, etc.) and featured presenters. Be sure to identify the executive sponsor for your program. Choose someone who will evangelize your internal communications initiatives. Leverage your documented goals to identify suitable presenters. Know that presenting virtually is different than presenting in person, so determine whether your presenters require virtual presentation coaching. Ensure there is agreement between your executive sponsor and featured presenters on your high-level goals. Success happens when your entire team is on the same page. 3. Map out your event calendar for the next 6-12 months. Planning ahead is critical. Map out live event dates on your calendar, so that you block key dates on both your presenters and employees calendars. Communicate these dates in advance so parties can plan, well in advance, to participate. 4. Identify audience engagement tools for use within your events.

6 Know the digital platform s capabilities in order to get the most of your program. Items such as interactive polling, moderated chat and interactive webcasting can enhance the virtual experience and engage your employees much more than document sharing and PowerPoint presentations. Find the right mix of presentation and audience interaction. Avoid boring presentations by using simple and engaging slides, and pausing for audience participation via polling. Leverage Q&A, chat and moderated chat options to maximize participation. After the event, publish answers to any questions that could not be addressed immediately. 5. Hold technology training sessions with featured speakers and a full-scale rehearsal one day prior to each live event. During the live events, your presenters have the option to pilot the plane. Be sure they re well trained on how to operate the cockpit controls. As with a musical, rehearsals are critical to a successful show. Be sure to perform a full-scale rehearsal of the event. 6. Hold review meetings after each event and adjust subsequent events based on your findings. Be sure your executive sponsor and presenters attend. At the meetings, review your communication event s metrics and determine whether you met the goals that you documented at the outset. Be sure to obtain feedback from both presenters and attendees regarding the entire experience. Learn any important lessons? Apply the lessons learned to make your next communication event even better. Virtual Solutions Success Relies on Good Managers Research conducted by Chad Thompson, senior consultant with the talent and rewards practice for Aon Hewitt, reveals The productivity of virtual work teams tends to increase from 10 percent to 43 percent, depending on the industry and organization. Thompson discovered that in several cases the net increase in productivity was equal to or more than the organization s savings on real estate costs. xii Nevertheless, HR Magazine s Bill Leonard points out: Virtual teams won t produce those returns unless they are well-managed. Virtual team members can easily feel disconnected and that they are not part of an organization. Keeping virtual workers engaged and promoting a sense of belonging are possibly the toughest challenges that managers of virtual work teams face. xiii And, Workforce s Michelle Rafter confirms: Companies that have successful virtual teams have managers who understand the unique characteristics of electronic communication. They are able to create a sense of communal experience so that interaction yields creativity and knowledge sharing. They are aware of the arsenal of tools at their disposal and have learned to use the appropriate technology to communicate and collaborate so that individual team members feel connected to one another. xiv

7 So, in the end, today s technology offers many possibilities and potential benefits to how work gets done in the global marketplace, but the results still rely on the strength of business leaders and the ultimate connection of message and methods to corporate goals. USMotivation has integrated virtual solutions into our service offerings, with successful virtual solutions including tradeshows, training and events. We re happy to help, but how you ultimately use these new tools is up to you. About USMotivation: Headquartered in Atlanta, Georgia, USMotivation is a full-service incentive company focused on five core services: incentive strategies and awards, group travel and meetings, creative communications, virtual experiences, and ROI analytics. To learn more, please visit our website, i Rafter, Michelle. Out of Site: Remote Possibilities, Workforce Management. June ii Executive Wisdom: When to go Virtual, Forbes. 8 October iii Lock, Howard and Macaulay, James. Hospitality Business Models Confront the Future of Meetings, Cornell Hospitality Industry Perspectives, June < iv Nortel. (2004). This is the way, this is Nortel: Teleworking to mobility over 10 years of evaluation at Nortel and Thornburg, L. (2007). Well-designed telework policies help you reap benefits. Society for Human Resource Management. v AHCCCS Virtual Office Pilot (2007) Arizona AHCCCS Virtual Office Evaluation Project Final Report. Phoenix, AZ vi WorldatWork (October, 2007). Attraction and Retention: The impact and prevalence of work-life & benefit programs. vii Workplace Communication Series Part III: Communication and Technology. 1 August viii Golden, T.D. (2006). Avoiding depletion in virtual work: telework and the intervening impact of work exhaustion on commitment and turnover intentions. Journal of Vocational Behavior.Vol. 69 (1), 176. ix Rafter, Michelle. Out of Site: Remote Possibilities. Workforce Management. June x Building Human Value Connections at Work: Best Practices from Great Places to Work. The Forum: Business Results Through People. Jan xi Engaging Virtual Employees: Innovative Approaches to Fostering Community. The Forum: Business Results through People. March 2012 xii Leonard, Bill. Make Virtual Teams a Productive Reality, HR Magazine 7 July xiii Leonard, Bill. Make Virtual Teams a Productive Reality, HR Magazine 7 July xiv Rafter, Michelle. Meetings Without Meeting, Workforce Management. 5 Sept