Corporate Learning Watch

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1 March 2011 New Technologies Help Employees Go Virtual Watch List New technologies like Virtual Private Networks, Voice over Internet Protocol, and desktop virtualization are allowing greater numbers and more types of employees to telework. In recent years, severe weather events and the threat of the H1N1 flu pandemic caused massive business shutdowns. Many companies now have telework options to ensure continuity of operations during such events. Rising gas prices and increased awareness of environmental issues are pushing more organizations to consider telework policies. Some organizations are encouraging some or all of their employees to work virtually so as to reduce or eliminate real estate, equipment, and energy costs. Key Takeaways Telework, a term that encompasses telecommuting and mobile working, refers to an employee s use of telecommunication technology to work at a location apart from the company office. Major benefits of teleworking include greater employee satisfaction and retention, reduced environmental footprint, increased employee productivity, and decreased overhead costs. At a minimum, companies should have policies and infrastructure in place to allow for ad hoc teleworking in order to maintain continuity of operations. Related Reports Managing Teleworkers Webinar Development & Use Cloud Computing Use of Podcasts, Blogs & Wikis in Learning

2 Executive Summary, or using telecommunication technology to work outside the office, is a growing trend. The term teleworking is more comprehensive than the more commonly used telecommuting, which usually implies that the employee is tied to a home office rather than the company office. New mobile technology allows people to work at any time and anywhere, however, and several factors are influencing the growth of teleworking, including the economic recession, high fuel prices, employees demand for a greater work-life balance, and the existence of new technology that makes teleworking a viable option for more types of employees. provides many benefits to both employees and employers. Employees who telework report increased job satisfaction and individual productivity. Companies with teleworking programs report increased overall productivity from teleworking employees as well as reduced overhead costs. A further benefit to both individuals and companies is the environmental advantage of teleworking: with the average worker driving 22 miles each way, a reduction in commuters equals dramatically reduced greenhouse gas emissions. can be implemented on an ad hoc basis or a more formal basis. At a bare minimum, a policy that promotes ad hoc teleworking will help maintain continuity of operations, allowing crucial work to continue even during inclement weather or times when fears of a pandemic flu keep the majority of workers home. Allowing for ad hoc teleworking also increases employee productivity by giving them a way to continue working even if an appointment or household emergency interrupts their day. With more employees teleworking on a more formal schedule, companies can reap the benefits of significantly reduced real estate, equipment, and energy costs. Taken to its logical conclusion, some companies are staffed with only teleworkers; the whole office has gone virtual. Although some people have teleworked for many years, in the past it was only an option for frequent business travelers or those knowledge workers whose work could be done from any basic computer. However, new technology like Voice over Internet Protocol (VoIP) phone service and Unified Communications (UC) software are allowing a greater range of employees to work from home. Virtual Private Networks (VPNs) permit employees to securely access company resources from their personal computers, while desktop virtualization allows IT departments to more easily deploy the appropriate resources to each employee. The basis for all these resources is the widespread access to broadband internet. 2

3 Business Options and Best Practices Telework Basics The terms teleworker, telecommuter, virtual worker, and mobile worker are often used interchangeably, and there is indeed much overlap among them. In general, the term telework encompasses the many flexible work arrangements that allow employees to do some or all of their work in a location other than the company office. Telecommuting usually implies working from home to avoid traveling to the office, while mobile working infers working from a café, library, business center, or other public area. The concept of the virtual worker simply indicates that the employee is taking advantage of technologies that make it possible to be virtually in the office without being there physically. Telework is a growing trend in the United States. According to the Telework Trendlines 2009 report from WorldatWork, The number of employee telecommuters in the U.S. increased 39 percent, from 12.4 million in 2006 to 17.2 million in 2008 (Telework Trendlines, 2009). That number also represents an increase of 74 percent since In addition, the study determined that the most common places for teleworking are an employee s home or car, and a customer or client s place of business. Restaurants and libraries are declining in popularity as places to work. During these times of economic recession, many companies face the prospect of either closing their doors, operating only part-time, or laying off large percentages of employees. By giving employees the ability to telework, however, organizations can reduce their overhead costs substantially and still remain operational. Taken to the extreme, technology now allows entire companies to go virtual, giving up their offices, physical infrastructure, and long commutes in exchange for a cadre of teleworking employees. Using technologies such as Virtual Private Networks (VPNs), Voice over Internet Protocol (VoIP), and Web conferencing, employees can conduct business in a business-as-usual way. is not a new concept; in fact, it has been around since the early 1970s, when a NASA scientist coined the term and conducted a study on its viability. Although the 1973 feasibility study came in response to high-traffic commuting in southern California, telecommuting did not gain popularity until the personal computers (PCs) of the 1980s gave employees access to office resources while they were away from the office. Since then, the concept of telecommuting has changed significantly as technologies have improved. In the 1990s, widespread broadband internet access gave remote employees access to and office networks. As security and virtualization became more sophisticated, employees were able to mimic office environments on their home computers. Today, wireless internet access and internet-enabled phones allow workers to be truly mobile, working anywhere and at any time. In recent years, severe storms and the threat of the H1N1 flu pandemic shut down many offices and kept people from work, ultimately costing billions of dollars in lost productivity (Pandemic Planning, 2009). Companies that had a teleworking policy and infrastructure in place, however, enabled their employees to access the resources they needed to continue to work productively. Even in the absence of large-scale emergencies, the exigencies of daily life often keep workers out of the office for issues such as doctor s appointments, sick children, and household crises. For such accidental or ad hoc telecommuters, the ability to telework can mean the difference between missing an hour of work and missing a day of work. Having a policy that allows for teleworking is crucial for continuity of operations. 3

4 As technology makes it possible for increasing numbers of employees to telework, it is important for organizations to have a thoughtful teleworking policy. Regardless of whether teleworking happens on an ad hoc basis or a more ongoing basis, the policy itself should never be ad hoc. Many companies explain that the reason they started a teleworking policy was because an employee requested it (Alverson, 1998). Once one employee is allowed to telework, however, companies should be prepared with a set of criteria and practices that can be applied to all employ- What Technologies Enable Telework? Technology Phone Voice over Internet Protocol (VoIP) Phone Fax Broadband Internet Connection Wireless Fiber Internet Access (Wi-Fi) Description The most basic of technologies, a regular land-line phone, is a fixture in most homes, and over 80% of the U.S. population now has at least one mobile phone. Even the most casual teleworkers need access to a reliable phone, and for the regularly scheduled teleworker, this phone may need to have increased functionality. For instance, telecommuters who primarily work from home and use their home phone line need to ensure that colleagues or clients can reach them in a consistent and appropriate way. This means that other family members should not have access to the phone during business hours. Similarly, the voic associated with the phone should contain a work-oriented outgoing message, not a family message. The same guidelines apply to mobile phones: If they are being used for work, they should have a professional outgoing message, and employees should be aware of background noise. Employees should also be wary of using the phone in inappropriate locations, such as a bar or a sporting event. One way to avoid confusion over employee use of personal phones while working remotely is to offer Voice over Internet Protocol (VoIP) phone service. Also known as Internet telephony, VoIP refers to the technology that allows users to make and receive phone calls via broadband or wireless internet access. Some mobile phones offer VoIP capability, while employees who work only at home may access VoIP directly from their PCs, through a specific VoIP-enabled phone, or through an analog telephone adapter (ATA). VoIP ties the employee s phone to the company s phone system so that callers can dial a company-based phone number to reach the employee or leave a voic on the company-based system. A caller can also reach the company operator or other extension through the company s existing system; no one need know that the employee is not in the office. Another benefit is that VoIP gives the company much more control over the phone system. Fax (short for facsimile) capability is not a necessity for all mobile workers on a daily basis. In certain fields, however, such as accountancy and real estate, signatures may need to be faxed several times a day. While fax capability used to entail installing a separate piece of equipment with a separate phone line, internet faxing (e-faxing) now delivers faxes via , which users can then print and sign if necessary. A broadband internet connection may be the single biggest factor that allows employees to work remotely. The dial-up modems of the early 1990s allowed data to be transmitted at a rate of only 56 kilobits per second (kbit/s), thus limiting the amount of data that employees could access. Today, broadband access rates of 700+ kbit/s allow for many of the necessary technologies described in this section, including VoIP, cloud computing, instant messaging, web conferencing, and virtual private networks. Wi-Fi internet helps mobile workers be truly mobile, giving them access to , files, and other work resources while away from the office or even their home computer. Wi-Fi access points in airports, cafes, and malls keep employees constantly connected, and although this continuous availability is not for everyone, it can be very important for some. 4

5 What Technologies Enable Telework? (continued) Technology Smartphones Internet Message Access Protocol (IMAP) Cloud Computing Desktop Virtualization Instant Messaging (IM) Virtual Private Network (VPN) Web Conferencing Web 2.0 Tools Unified Communications (UC) Description Smartphones are mobile phones with extra functionality, such as internet, file reading and writing, and calendar. Most smartphones synchronize (synch) with desktop or mainframe computers, so users can access their information on the go. The Internet Message Access Protocol (IMAP) is an platform that allows a user to access his or her account from multiple locations and see the same data. Whereas with the Post Office Protocol (POP), messages are downloaded to the user s computer and stay there, with IMAP, the messages (and folders, saved mail, and other settings) reside on a server until the user deletes them. IMAP is a key feature for mobility of user data. Cloud computing is a service model for providing computing resources like applications, storage, and infrastructure via the internet. With files and other data accessible through internet-based services, employees don t need to worry about taking their work with them because they can log into their Cloud computing site from any computer and access their files remotely. With traditional computing, all software and files are installed directly to a user s computer, where he or she can access them. With desktop virtualization, the resources exist on a central server, and the user logs in to the server to access those resources virtually. Desktop virtualization gives IT departments a simple way to provide employees with the resources they need without having to physically access the remote computers. For companies with a large percentage of teleworking employees, desktop virtualization is one of the crucial factors that enable IT departments to support remote staff. Once the province of teenagers socializing with each other, Instant Messaging (IM) has become a staple of teleworking. It substitutes for over-the-cubicle conversations between workers who need quick answers to pertinent questions by providing real-time, text-based chat capability. It can also be tracked and monitored by managers; many managers cite IM as a way to check up on teleworking employees and make sure they are working productively and staying on task. Virtual Private Networks (VPNs) offer remote employees a way to access their company s private network via the public internet. Since most companies networks are protected by a firewall, the VPN provides a secure, encrypted channel to company resources. A web conference uses internet-based communication tools like VoIP, video, virtual white boards, chat rooms, screen sharing, and polls or surveys to mimic the features of a live conference. Web 2.0 describes web-based applications that promote networking and sharing information. Web 2.0 tools like blogs, wikis, virtual worlds, and social networking sites give employees an unprecedented way to interact with their peers both within and outside their companies. As teleworkers become a larger part of the workforce, Web 2.0 tools create a virtual water cooler: a place where employees can share information that is critical to their jobs while also building their community. Unified Communications (UC) integrates multiple communication modalities voic , , fax, mobile phone, presence into one system, with information relayed over several systems. For instance, a caller can call one number to reach a teleworking employee, and the call will automatically be routed to the employee s home or cell phone if he or she is out of the office. Then, if the caller leaves a voic , the message will be sent to the employee as both an and a text message in addition to being recorded on the voic system. UC can help teleworkers communicate seamlessly with colleagues and clients both within and outside the office. Key to the success of UC is the concept of presence that is, which employees are available for what type of communication. 5

6 ees. Some state and municipal governments offer subsidies for individual teleworkers or for telework initiatives, while the federal government mandates that all of its departments have telework programs. Who can Telework? has long been necessary for employees whose work requires them to do a significant amount of travel. Sales representatives, trainers, and technical installers do most of their work remotely. For these road warriors, who may spend months at a time out of the office, being able to telework effectively and productively is crucial. In the past, these workers had to utilize the business centers of hotels or rent services from telework centers or telecenters. Today, however, many of the technologies discussed above have enabled them to truly take their work on the road and be as productive out of the office as they are in it. Aside from those employees whose extensive travel requires teleworking, telecommuting was usually limited to knowledge workers individuals who work with information, not with the physical production of goods or services. Knowledge workers include writers, researchers, and analysts. However, recent technologies such as VoIP, VPNs and Cloud computing have made it possible for companies to broaden the definition of which fields are suitable for teleworking. Call center employees, who were once limited to a room full of phones and cubicles, are now part of a new wave of teleworking employees. Nonetheless, there are certain workers for whom teleworking will never be an option. Assembly workers, grocery clerks, security guards, and other similar positions will never be able to replace their physical presence with a virtual one. Benefits of Increased Productivity According to a 2007 survey by the Computing Technology Industry Association (CompTIA), 67 percent of companies cite greater employee productivity as a result of implementing telecommuting initiatives (Krasne, 2009). In fact, most proponents of telework cite increased productivity as one of the major drivers of the movement. Certainly, omitting the morning and afternoon commute can add several hours to an employee s day, and many telecommuters state that they use this extra time for catching up on s, calendar issues, and other administrative tasks. Some simply use the longer day to work longer hours, while others use the extra time to create more flexibility for family or personal time. Apart from the time gained by bypassing the daily commute, many employees feel that they can work more efficiently away from the distractions of the office. Whether it is a quiet room at home or an isolated corner of a café, non-office environments may help employees work more effectively. And as discussed above, the ability to telework allows workers to work from home when they cannot get to the office. Environmental Responsibility Another major driver of many organizations telework initiatives is the desire to be more environmentally conscious. Rising fuel costs, coupled with an increased awareness of climate change issues, are pushing people to consider the efficacy of commuting. According to a 2007 study by the Consumer Electronics Association, if the 53 million people who could telecommute were to start telecommuting just one day per week, it would result in an 8 percent reduction in U.S. energy consumption. According to the study, the 2007 telecommuting rates alone were equivalent to taking two million cars off the road, or saving enough energy to power one million homes (Martin, 2008). Individual companies with effective telecommuting policies have earned the right to flaunt their reduced environmental footprint. Software giant Cisco, for example, reported that its large-scale telework program prevented approximately 47,330 metric tons of greenhouse gas 6

7 emissions from being released (Wolchack, 2009). Reduced Overhead Costs While companies that are entirely virtual have significantly reduced overhead costs, implementing teleworking on a smaller scale can still help companies reap the benefits of lower real estate, equipment, and energy costs. Experts suggest that companies can reduce operating costs by 40 percent per person by letting them telecommute (Marquez, 2008). In order to see these savings, however, organizations must have a formal telework policy and know, on a given day, how many people will be in the office. The practice of hot desking, or setting up shared workstation spaces for revolving employees, can allow companies to reduce their infrastructure while still maintaining the same staffing levels. For instance, if a 100-person company has a policy that leads to 25 employees teleworking each day, the company can occupy office space that is 25 percent smaller. Such calculations cannot work if teleworking only happens on an ad hoc basis. Employee Satisfaction and Retention The least quantifiable but perhaps most important reason to promote teleworking is employee satisfaction and retention. Happy employees exhibit less stress-related illnesses, are more productive, and have less job turnover. A 2006 study from Penn State University that examined 20 years of research on teleworking (and other flexible work arrangements) found that when employees have more control over their work environments, they report higher job satisfaction and less motivation to leave the company. They also boast higher performance ratings (Gajendran and Harrison, 2006). Although some employers may not count job satisfaction as terribly important during recessionary times, the fact is that when the pendulum shifts, employee retention and satisfaction will again move to the forefront of management s priority list. Acronyms HR: Human Resources IM: Instant Messaging IT: Information Technology UC: Unified Communications VoIP: Voice over Internet Protocol VPN: Virtual Private Network References Agnvall, E. (2009). Meetings go virtual. HRMagazine, 54(1), Retrieved on April 19, 2010 from EBSCO Online Database Business Source Complete. x?direct=true&db=bth&an= &site=eh ost-live Alverson, M. (1998). Welcome to the `virtual workplace. Women in Business, 50(6), 20. Retrieved Academic Search Complete. t=true&db=a9h&an= & Butler, E., Aasheim, C., & Williams, S. (2007). Does telecommuting improve productivity? Communications of the ACM, 50(4), Retrieved Academic Search Complete. t=true&db=a9h&an= & D., O. (2010). Mobilizing VoIP. Entrepreneur, 38(2), 34. Retrieved on April 19, 2010 from EBSCO Online Database Business Source Complete. search.ebscohost.com/login.aspx?direct=true&db= bth&an= & Davis, J. (2006). Telecommute safely. Journal of Accountancy, 202(2), Retrieved on April 19, 2010 from EBSCO Online Database Business Source Complete. login.aspx?direct=true&db=bth&an= & Fed office says the payoff for teleworking is extraordinary. (2009). Work-Life Newsbrief & Trend Report, 1. Retrieved on April 19, 2010 from t=true&db=bth&an= & Gajendran, R & Harrison, D. (2006). The good, the bad and the unknown about telecommuting: 7

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