Virtual Workforce: The Changing Face of Absence and Productivity in the Technological Age Think Tank White Paper Executive Summary

Transcription

1 Virtual Workforce: The Changing Face of Absence and Productivity in the Technological Age 2011 Think Tank White Paper Executive Summary June 2011

2 Virtual Workforce Think Tank Participants Dan Arkins, Regional Sales Director, Disability, MetLife Mary Bannan, Nurse Case Manager, Health, Safety & Performance, GlaxoSmithKline Lisa Bonner, Asst. Vice President, Contemporary Work Practices, The Hartford Matthew Brodsky, Web Editor/Senior Editor, Risk & Insurance Magazine Marcia Carruthers, CEO/President, DMEC Roberto Ceniceros, Senior Editor, Business Insurance Magazine Charles M. Fox, J.D., Executive Director, DMEC Diane Hettinger, Director of Health & Wellness, Prudential Debi Horvath, Absence Management Consultant, Raytheon Patrick Leary, Program Manager, Workers Compensation, Disability & Leaves of Absence, Employee Benefits and Services, Genentech, Inc. Sharon MacDougall, Principal, Remote Workforce Consultants Kimberly Mashburn, Vice President, Strategic Partnerships, Prudential Elisa Mendel, National Vice President, Healthworks and Product Innovation, Kaiser Permanente Sharon Milligan, Chapter Liaison, DMEC Denise Pitt, Manager, Claims Technology Administration, Liberty Mutual Robert Rucker, Manager, Short-Term/Long-Term Disability, Raytheon Maggi Walsh, Asst. Director, Life & Disability Practice Lead, The Hartford Steven Wiesner, MD, Chief, East Bay Occupational Health Department, Northern California, Kaiser Permanente Sarah Wuest, Manager Work Life, Best Buy Corporation Facilitator: Terri Dittmann, Dittmann Associates Writer/Editor: Tricia Crisafulli For more information on this report or DMEC, contact: DMEC Inc Copyright 2011 DMEC, All rights reserved. 2

3 Executive Summary Work is not defined by a physical location to which people travel every day. Increasingly, people have more flexibility in where, when, and how they work. Telework is not a new phenomenon (the terms telework and telecommute were coined by Jack Nilles in 1973). The trend, however, continues to rise. From 2003 to 2008, the number of employees who work remotely at least one day a month increased by 43% to 33.7 million. 1 In addition, telework on a regular basis, but not full-time, is offered by more than half of organizations in the U.S. 2 For employers, the virtual workforce offers several benefits including improved recruitment and retention, increased productivity, decreased absenteeism and presenteeism, reduced stress, lower real estate costs for offices and workspace, and business continuation arrangements should inclement weather or natural or human-made disasters prohibit employees from traveling to their regular work locations. For employees, having the option to telework even on a limited or occasional basis offers greater flexibility, supports work/life balance, and contributes to job satisfaction. Other benefits include energy savings, reduced carbon emissions, and lower risk for spreading colds and flu. To address the opportunities and challenges presented by the virtual workforce, especially as it relates to disability, absence and productivity, the Disability Management Employer Coalition (DMEC) convened the Virtual Workforce Think Tank 2011, an expert panel of thought leaders from a variety of industries, including insurance, healthcare, electronics/ defense, technology, pharmaceutical, retail/consumer electronics, and media/information. These experts engaged in an in-depth discussion of a variety of topics, including: How the virtual workforce is changing the way people work; The impact of telecommuting on disability and absence management, from handling workers compensation claims for remote workers to using flexible work arrangements as an accommodation; The rise of telehealth and telemedicine to improve efficiency in health care delivery; Managing and leading virtual teams, including the use of manager tool kits to address the issues associated with a remote staff. A common theme in the discussion was the importance of applying best practices in disability and absence management to the virtual workforce. Whether employees work remotely or on site, the same principles apply when managing workers compensation cases, short-term and long-term disability, and other absences. By drawing on their past experience, knowledge, and best practices, employers can adopt strategies for the virtual workforce. Perspectives and Case Study Summaries Several case studies were presented that illustrate strategies for the virtual workforce. Following are brief synopses of these case studies, which are published in more detail in a full version of the DMEC Virtual Workforce white paper [see page 6 for more information]. 3

4 Best Buy - Results Only Work Environment Best Buy Corporation has adopted a results only work environment (ROWE) policy for employees in its corporate office. By creating a flexible workplace, Best Buy focuses on the work that needs to be accomplished, rather than on when or how it is done. Such flexibility means that employees get to decide when they can work most efficiently. We are a results only work environment. We are not paying so much attention to the hours, but to the work and the results that we are getting from employees, said Sarah Wuest, Manager - Work Life, for Best Buy. GlaxoSmithKline - Ergonomics and Safety GlaxoSmithKline emphasizes safety and ergonomics for all employees, including those who telecommute field sales representatives and clinical research associates who comprise approximately 30% of GSK s 18,000 U.S. employee population. GSK supports this group of employees through the work of two certified occupational health nurses. Ergonomic assessments of home offices are provided for all reported ergonomic issues. In addition, an ergonomic self-assessment tool specific to field sales employees and clinical research associates is in development. We are embedding a culture of safety within our entire population. Safety and good health are fundamental to workforce sustainability, explained Mary Bannan, Nurse Case Manager, Safety and Performance, GSK. The Hartford - Flexibility and Connection At the Harford, more than 14,000 employees, or 54% of its employee population, work remotely, whether on an ad hoc basis or as a regular arrangement. Broader implementation of flexible work arrangements saves millions of dollars in real estate costs while adding to employee job satisfaction and work/life balance. To establish and nurture connections among those who work remotely or in a variety of locations, The Hartford offers a social network platform to connect employees. Work is what we do not where we are. This thinking is a paradigm shift that allows people to achieve both personal and business goals, observed Lisa Bonner, Assistant Vice President, Contemporary Work Practices, The Hartford. MetLife - Teaching Employers about Flexible Work Increased flexibility in work arrangements may raise questions about how employers can make the best use of their human capital. There may be uncertainty, for example, with regard to how workers compensation, short-term disability, and other paid leaves apply to remote teleworkers. What s needed is a formal flexible work arrangement policy, defining things such as when and where remote employees are expected to work and what happens when a teleworker reports an illness, injury, or disability as being job-related. You don t have to recreate the wheel. It s all the talk that we ve heard for the past 30 years: employee engagement, the importance of manager communication, and documenting policies, said Dan Arkins, Regional Sales Director, Disability, MetLife. Raytheon - Telecommuting as an Accommodation Raytheon Company has a robust absence management program to facilitate return to work following an illness, injury, or disability. Although not all jobs at the company are suitable for telecommuting, Raytheon is exploring greater use of remote work, particularly as an accommodation for employees who are recuperating and cannot return full-time to the 4

5 workplace. We want to use the virtual workplace as a best practice for return to work and accommodation, said Robert Rucker, Manager, Short-Term Disability/Long-Term Disability, for Raytheon. Telehealth and Telemedicine Kaiser Permanente Kaiser Permanente is using technology to improve work efficiency and employee satisfaction. As an employer, Kaiser Permanente allows flexible work arrangements for certain job classes, such as its call center staff members. As a provider of integrated health care services, through its network of hospitals and physicians, Kaiser Permanente is investing in technology to expand telehealth and telemedicine, including a comprehensive electronic medical record (EMR) that provides a centralized and secure repository for all patient medical information. Telehealth encompasses information management tools and care delivery. Telehealth is not just for someone who is acutely ill or injured, but can serve as a tool for everyone to manage his/her overall health through technology, said Dr. Steve Wiesner, Chief, East Bay Occupational Health Department, Northern California, Kaiser Permanente. Prudential Managing Flexibility Prudential offers flexible work options, encompassing flextime, compressed work week, remote work from home, hoteling, and job-sharing. By 2010, 78% of Prudential employees were utilizing some kind of flexible work arrangement. Through its flexible work arrangements database, a comprehensive intranet site, and a team of support personnel, Prudential provides tools, resources, and guidelines for teleworkers and other kinds of flexible workers. Supporting managers with resources and toolkits is a top priority. We ve been doing business-based flexibility formally since 1998, but informally for almost 30 years. In late 2001 we refreshed our business case for flexibility for ease of access, security and business continuation, and corporate culture, stated Diane Hettinger, Director of Health & Wellness, Prudential. Liberty Mutual Human and Technology Components Liberty Mutual has created a decision kit for managers, which addresses topics such as the qualifications of the teleworker candidate, whether arrangements will be short-term or long-term, how the manager will communicate with employees, and how objectives and expectations are defined. Once the human side is finalized, the technology component ensures that remote workers have the computer hardware they need, a high-speed secure Internet connection, and the latest software. The biggest challenge for telework is the environment. Is it conducive to work? Do you have an appropriate network connection that is secure, reliable, and safe? commented Denise Pitt, Manager, Claims Technology Administration, Liberty Mutual. Best Practices Through the discussions, the expert panel identified several best practices to implement, manage, and support a virtual workforce. They include: Establish clear policies on flexible work arrangements, including when, where, and how work can be conducted. Include definitions of work and actively at work. Utilize and adapt best practices in disability and absence management to meet the needs of teleworkers. 5

6 Develop manager toolkits to improve comfort and competency in managing remote teams. Use social media and collaboration tools to foster connection and exchange of ideas. Establish a social media policy on appropriate usage and sharing Define appropriate use of ad-hoc telecommuting in lieu of taking sick days when employees are unwell, but not seriously ill. Explore telehealth and telemedicine solutions to offer care and treatment resources to employees who don t require an in-person office visit. Emphasize safety and ergonomics for onsite and remote workers to prevent injury, illness, and disability. Implement technology tools for seamless and secure connections between remote locations and the home office. (For more details about the company initiatives, or read the full report on the Virtual Workforce, please see the DMEC web site at Conclusion Reducing real estate costs, improving energy efficiency, ensuring business continuity, and offering more flexibility to employees continue to drive growth of the virtual workforce. As employers implement and expand flexible work arrangements, formal policies must be established. Issues such as when and where employees can work, whether hours will be assigned or are up to the employee s discretion, and how performance expectations will be set and measured must be clearly communicated to all parties. Further, flexible work arrangements will increasingly be used as accommodations for employees who have a disability. The virtual workforce is not without its challenges. When employees work from home, boundary lines between work and home life can easily blur. The role of the manager in overseeing a remote staff and good self-monitoring by the teleworker are critical. The trend toward increased telework also leads to some confusion over what constitutes a workers compensation claim for a teleworker. To address these and related issues, best practices in disability and absence management are essential to supporting all employees, including virtual workers, to promote health, productivity, and engagement. The virtual workforce has demonstrated that work is not merely a place to which people travel each day. Rather it is an activity in which people can engage in a variety of settings. What matters most are the results achieved, attainment of the company s financial and productivity goals, and the satisfaction of employees. References 1. Washington Business Journal, 33.7 million now telework, February 16, 2009, 2. World atwork, Survey on Workplace Flexibility, February 2011, 6

7 Acknowledgements Thank you to our sponsors: Kaiser Permanente Liberty Mutual MetLife Prudential The Hartford The Disability Management Employer Coalition (DMEC) is a non-profit organization that advances strategies and resources to improve workforce productivity by minimizing the impact of absence and disability. The primary goal of DMEC is to assist employers in developing cost-saving programs and returning employees to productive employment. DMEC currently has over 4,000 members in chapters across the United States. For more information on DMEC, including upcoming conferences, seminars, virtual education webinars, chapter activities, and member news and resources visit or call