Remote Work: An Examination of Current Trends and Emerging Issues

Transcription

1 Remote Work: An Examination of Current Trends and Emerging Issues Spring 2011 Emily Busch Jenna Nash Bradford S. Bell ILR School & CAHRS Cornell University Suggested Citation: Busch, E., Nash, J., & Bell, B. S. (2011). Remote work: An examination of current trends and emerging issues. Ithaca, NY: Center for Advanced Human Resource Studies, Cornell University This research report was prepared by two research assistants for the Center for Advanced Human Resource Studies (CAHRS), under the guidance of a faculty advisor. The research assistants collected and reviewed academic literature and conducted nine interviews with CAHRS partner companies. The research looked at four key themes identified through research, which include isolation, virtual worker competencies, work-life balance, and managing virtual workers.

2 Introduction As our world becomes more global and diverse, companies have identified the need for successful attraction, selection and retention of top talent around the world. In order to meet the needs of the increasing global business and corresponding human capital demands, companies have gradually shifted from the traditional in-office work environment to a virtual workplace. As companies attempt to quickly adapt to meet employee and business needs, research has struggled to keep up with the emerging trends of the virtual workplace. Though some research has been done on the virtual workplace and on remote workers, findings are not comprehensive and do not identify key trends and future directions. Therefore, this project focuses on filling those gaps first by identifying trends and gaps in the current literature and then through interviews with CAHRS partner companies to determine what opportunities, challenges, trends and future goals companies are currently undertaking in the world of remote work. Through a thorough literature review we identified four broad themes, which discussed some potentially important unanswered questions/issues within each area. Based on these themes, we conducted interviews with nine CAHRS partner companies to assess whether the issues discussed in our literature review align with the issues that our CAHRS partner companies are facing around remote work. The interviews allowed us to identify how important these issues are to the participating CAHRS companies and the strategies or practices they have developed to manage their virtual employees. Background Information The nine CAHRS partner companies that participated in this research were Aetna, Charles Schwab, CitiGroup, Cisco Systems, General Mills, IBM, JPMorgan Chase, Prudential, and United Technologies Company. All of these companies have experienced an increase in their virtual population. Yet, there remains considerable variation in the extent to which these firms utilize remote work arrangements. In one firm, only 3% of employees worked remotely, whereas in another 92% of employees qualify as remote workers. Across the nine companies, an average of 50.1% of employees work remotely. Although there were minor differences in how companies classified remote workers, for the purpose of this research project we define a remote worker as an employee who spends at least part of their time working virtually (i.e., telecommuting). Indeed, the most common type of virtual work arrangement among these companies was working virtually on a part-time basis. 1

3 Professional and Personal Isolation of the Remote Worker As companies continue to increase the number of employees with remote work arrangements, the research literature suggests that feelings of isolation may arise for employees due to their lack of interaction with others. An employee may begin to feel lonely and socially isolated due to the absence of face-to-face interactions and less frequent opportunities for personal and professional relationship building. The academic literature suggests that remote workers feelings of disconnectedness and isolation are influenced by their managers as well as their own competencies (e.g., autonomy). Managers should have informal check-ins with their virtual worker to convey availability and support and encourage their virtual employee to join company activities, such as mentoring programs and clubs, which foster relationship building with colleagues (Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). Research also discusses the role of technology and how it can provide opportunities for greater social and professional exchanges between remote employee and their colleagues, peers, and managers. Employees in virtual environments may develop perceptions of exclusion or isolation due to their need to rely on technology to communicate with others; common forms of communication technology (e.g., ) do not provide a high level of information richness and can inhibit social exchange (Marshall, Michaels, & Mulki, 2007). Although the CAHRS partner companies viewed isolation as a valid concern, it has not been a commonly reported and/or recorded issue. There are a few potential explanations for this finding. In some cases, isolation may not be seen a concern due to the lack of tracking and reporting of these issues. The few instances of isolation companies have experienced have typically been dealt with by providing a process that allows an employee to return to a non-remote work arrangement at least 1-3 days per week. Thus, modifications may be made to the work arrangement before isolation becomes a serious issue and is reported. The low incidence of isolation may also be due to the type of remote work arrangements that were common in the companies we interviewed. There is a greater risk of isolation for a full-time remote employee than for one who teleworks on a part-time basis. With the exception of two companies that had a larger percentage of full-time remote employees, the CAHRS participants stated that a majority of their virtual employees work remotely only a few days a week and, therefore, are still collaborating face-to-face with coworkers on a regular basis. Promoting socialization and relationship building for individuals in a telework arrangement with other colleagues is also a common strategy used to prevent feelings of isolation. Technological advancement has increased the ability for employees to interact with colleagues around the world during real work time. These increased paths of communication are one way the feelings of isolation have been mitigated. Many companies 2

4 have incorporated strategies to prevent and overcome isolation in their training programs for virtual employees. The most common strategies used to prevent virtual employees from feeling isolated include developing websites and sharepoints with extensive resources for the virtual employee, creating online forums to facilitate discussions among the virtual community, providing videoconferencing capabilities to more closely mirror face-to-face communication, and providing employees in remote work environments with virtual buddies. One of the CAHRS companies implemented a telecommuter s forum, which allows remote employees to communicate with one another and share best practices of how to make the most of the virtual arrangement. This is one way that employees can connect with other employees to foster relationship building. A virtual buddy is a non-virtual individual who communicates with the virtual employee to keep them informed of changes in the work environment and ensure the employee feels a sense of inclusion with others in the room. A majority of companies have internal messaging systems and corporate social media sites to provide other paths of communication. These various support networks reinforce to the virtual employee that they are supported and have a broader virtual community to connect with beyond their non-virtual coworkers. One concern is that employees in virtual arrangements may be excluded from developmental opportunities that are otherwise available to employees who have greater face-to-face presence in the workplace. Research on the isolation of virtual employees has discussed the phenomenon of being out of sight, out of mind (Gajendran & Harrison, 2007). Sometimes employees will have greater opportunity to take on developmental projects by being in the right place at the right time. The virtual employee may need to be more proactive and engage in more frequent communication to ensure that they are not forgotten when these types of opportunities arise. We asked CAHRS partner companies to share what they do to ensure the remote employee are exposed to valuable developmental opportunities. Some of the practices used are the creation of individual development plans and web-based learning programs, such as webinars. However, most companies suggested that, due to the growing amount of online training, the development opportunities are the same for all employees regardless of their work arrangement. With regard to development, there is a greater need for constant communication with team members and one s manager to ensure they are aware of the virtual employee s developmental needs and interests. In alignment with research findings, socialization and relationship building is an important aspect of inclusion for remote employees. The academic literature suggests that the informal communication one misses on a day-to-day basis in the workplace and the 3

5 degradation of non-verbal cues in virtual interactions may increase a remote worker s disconnect from his or her team. For the virtual employee, it is important that they maintain constant communication with others. For instance, weekly staff meetings can be conducted virtually so virtual employees can join the teleconference whether they are working from home for the day or are in a remote location full-time. These weekly staff meetings are when the virtual buddies, as discussed above, can have the most significant impact on socialization. Several companies have a requirement that an employee work in the office for at least one year before they are able to pursue a virtual work arrangement, or that the employee have experience working virtually in a prior role. This provides the employee with ample time to build relationships with others, learn about the organizational culture, and develop mentoring relationships. If possible, most companies are requiring that their virtual employees come into the office a few times per year to network with co-workers and business leaders. This also provides opportunities for the manager and employee to have face-to-face discussions regarding the employee s performance, the virtual work arrangement, and any unmet needs or unresolved issues. Research supports the value of providing a full-time remote employee with opportunities to engage in face-to-face interaction with colleagues and managers (Davenport & Pearlson, 1998). Evaluating the Competencies and Selection of Successful Remote Workers The competencies identified as most critical to teleworkers performance were consistent across the interviews and research literature. The key competencies acknowledged in the interviews for a successful teleworker include being self-motivated and self-disciplined, having effective communication skills, being technologically competent and resultsoriented, resourcefulness, and possessing strong time management skills. Research has discussed an evolving idea of virtual competence which consists of competencies such as self-efficacy, technological skills, and strong communication skills (Wang & Haggerty, 2009). One area we were interested in was the selection process the companies used to identify individuals for a remote work arrangement. Depending on the company, some employers do not allow an employee to work remotely upon hiring and may require the employee to work with team members, to exemplify strong performance and to have a proven track record prior to requesting a flexible work arrangement. A few of the companies have implemented an informal request process which begins as a discussion between the manager and employee and allows the manager to approve or deny the employee s request 4

6 depending on the circumstances. In many cases, if an individual is a high performer in a role that is conducive to a remote work arrangement, then the company is more inclined to approve the request. However, some companies have implemented a formal request process the employee must go through if they are interested in entering a remote work arrangement. A unique request process requires the employee to present a business case for their remote work arrangement. The manager and HR then assess the employee on a set of criteria including how the arrangement is mutually beneficial for the individual, team, and company and to what extent that employee has displayed the competencies required to be a successful remote employee. After an employee is approved or selected for a virtual arrangement, companies use various processes to prepare the individual for their telework assignment. Research discusses how companies that are most effective at preparing individuals for their virtual work make sure that virtual employees had the necessary technology to connect them with the business. It also highlights the importance of making sure non-remote employees are trained on how they can work most effectively with virtual employees (Davenport & Pearlson, 1998). A question asked to all CAHRS companies was how they are preparing these individuals for their assignment to ensure they have the capability and resources to be effective in the remote environment. In some cases, the preparation process is dependent on what competencies and experiences were identified in the selection process that made the individual a good fit for the remote work arrangement. Across all companies, the first step in the employee preparation stage was providing technological equipment to all virtual employees and ensuring they had a space in their remote work environment that was conducive to working productively. Most companies have websites with best practices for working remotely, online training programs, rules and guidelines that a virtual employee must adhere to, and other performance aids and tools. Although there are many virtual training resources available online for these employees, most companies do not require their employees to complete the training available. However, in general, companies require the employee to read through the rules and guidelines and rely on the manager to provide a sufficient level of support to the virtual employee as needed. The most common virtual employee training focuses on how to utilize and leverage technological tools, time management, and how to effectively build relationships in the virtual environment. 5

7 Work-life Balance A pivotal aspect of virtual work is work-life balance. Research has explored both the costs and benefits of virtual work for an employee s personal life. Employees value the time and money savings that virtual work offers, as well as the flexible work hours and autonomy. Virtual workers are more productive because they are able to work without interruption, which allows them to focus for large blocks of time. Additionally, the growing use of technology such as webcams, cell phones and instant messaging enables efficient communication with colleagues. Overall, researchers have found that virtual workers are slightly more satisfied than their in-office counterparts. In general, virtual work leads to higher satisfaction, lower absenteeism and higher retention. Additionally, because the majority of virtual assignments result from the employees expressed desire, organizations usually observe little to no decrease in production or performance. On the contrary, productivity often increases (Erskine, 2009; Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). However, researchers have identified a few downsides to a remote work arrangement with regard to an employee s work-life balance. Some remote employees struggle when attempting to coordinate their work with their managers and other employees or when attempting to receive timely feedback. Furthermore, some employees find it difficult to understand complex tasks they are assigned virtually, which causes them to focus on the work more intently, letting personal obligations slide (Erskine, 2009). The absence of defined work hours means that virtual workers often work longer hours and struggle to create time for their personal endeavors. Additionally, virtual home workers are often burdened with household duties. These factors often lead to family disagreements (Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). Based on the research findings, we asked the companies what impact virtual work has had on employees work-life balance; considering both the costs and benefits. A few of our interview findings match the results of other researchers. For instance, companies extolled the increased productivity of the remote workers and their ability to meet family needs due to greater flexibility. In addition, companies touted the enthusiasm of employees for the substantial cost savings due to decreased commutes. A unique benefit one company observed was reduced stress levels in virtual employees. The company attributed the decrease in stress levels to the reduced number of hours spent commuting, as well as the minimized distractions while working. The companies also noted that their virtual employees face similar challenges to those discussed in the literature. For example, the companies reported that their virtual workers tend to work longer hours at home than they do in the office. This was attributed to the 6

8 fact that there are fewer cues to signal the end of the workday (e.g., coworkers leaving at the end of the day). Companies also mentioned that their virtual employees often have difficulty maintaining a regular routine. The employees tend to have difficulty separating their work and life and often face distractions from their home life. A second trend we examined within the work-life balance category related to the physical work environment at home. In particular, we asked the organizations if employees have access to a separate workspace within the home, such as a home office or private room with a door. Research suggests that an insufficient workspace at home has a negative effect on productivity. In addition, it makes it more difficult for the worker to establish work-life balance. In these cases, childcare duties often fall to the virtual, stay-at-home worker, impeding their ability to do work (Raghuran & Weisenfeld, 2004). The CAHRS interview participants agreed that the virtual work environment is critical. Most companies strongly recommend or require a virtual worker to have a private and/or separate workspace in the home. One company, which is heavily populated with virtual workers, views the home as an extension of their physical office, and as a result visits the homes of a large portion of their remote workers. This company has developed a comprehensive checklist for the home-work spaces of their employees to ensure these spaces are in compliance with OSHA regulations and ergonomic requirements. A few of the interviewed companies require employees to make sure that their computer screen is not visible to anyone else in the home to ensure data security and confidentiality. The final issue we examined in the work-life balance category relates to the management of these work-life issues. We asked companies if they provide virtual employees with strategies for managing work-life balance issues related to telework arrangements. Research suggests organizations should focus on training virtual employees in effective virtual work practices and communication techniques (Barron 2007; Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). Most companies do not yet address this issue in a formal manner. A few companies recognized the need for an employee to set boundaries or rules in the remote arrangement in such a way that would best benefit the individual. Techniques suggested to employees include getting dressed for a normal workday to put oneself in a formal, business mindset and to focus on following a daily routine. Yet, most organizations provide remote workers with little, if any, formal training on how to effectively manage work-life balance issues. 7

9 Remote Management Our final trend focused on the management of remote workers. Given the different issues associated with virtual work, we asked companies whether they look for any specific skills or competencies among those who manage remote workers. This was to evaluate whether companies have any unique practices when selecting, assessing and developing remote managers. Research highlights the importance of managers in a virtual employee s worklife, as employee attitudes regarding the organization are mainly based on their attitude towards their supervisor (Marshall, Michaels & Mulki, 2007). Research suggests that managers should have informal check-ins with their virtual workers, encourage their virtual employee to join mentoring programs, and provide a welcoming and supportive environment for new virtual employees (Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). The interviewed companies were in alignment on the topic of managing virtual workers. Currently, these companies focus on developing the same competencies for all managers, regardless of whether they manage virtual or more traditional employees. The organizations prioritize communication skills for these virtual managers as well as relationship building skills. The organizations look to these managers to provide employees with clear goals and expectations for their work, just as for any other employee in the company. The second factor we examined in this category focused on manager competencies, specifically on development. We asked companies if they provide any training to remote managers on how to help their direct reports overcome the challenges associated with virtual work. For instance, training may focus on how to help employees overcome feelings of isolation, handle work-life balance issues, and build the competencies necessary to be an effective remote worker (Marshall, Michaels & Mulki, 2007; Mulki, Bardhi, Lassk & Nanavaty-Dahl, 2009). Golden and Veiga (2005) explain the importance of the manager-direct report relationship through the managerial control/leader-member exchange (LMX) model. This research finds that virtual employees with high quality LMX relationships have significantly higher organizational commitment and job satisfaction than virtual employees in low quality LMX relationships, which is possibly because of the manager s pivotal role in virtual employees work experience. Since virtual employees who feel they have a trusting, autonomous LMX relationship are generally more satisfied and perform better, it is imperative to train managers on best practices for managing virtual workers and the unique challenges that arise in this environment (Erskine, 2009). 8

10 On average, the companies surveyed provide their remote managers with training through the company website, webinars and online tools. Most of these training efforts are targeted towards management in general and not specifically towards managing virtual workers. A few companies offer specific training solutions for remote managers, which include narratives, exercises, quizzes, and tip sheets that managers are able print out while taking the course. Additionally, these e-learning programs tie in discussion forums, both online and in person, to continue the conversations regarding managing virtual workers and to keep these managers networked. Our final topic within the category of managing remote workers concerns the psychological distance between a manager and a virtual worker. We asked companies if they had found any effective methods for the manager and virtual workers to build trust and reduce psychological distance. Research suggests that employees feelings of job satisfaction are directly related to the perceived degree of psychological distance between them and their manager. An important driver of this perceived psychological distance is trust; trust in one s supervisor is no less important for virtual workers, and in fact, feelings of trust, reciprocal relations, and feelings of empowerment may have a greater impact on the success and satisfaction of the remote worker (Erskine, 2009; Raghuran & Weisenfeld, 2004). The companies in this study pointed to their managers use of advanced technology to facilitate frequent communication, efforts to develop an inclusive team environment, and virtual team discussions as effective ways in which they were able to reduce psychological distance. A majority of the companies, along with the academic literature, acknowledges that nothing can completely replace the value of face-to-face collaboration for build trusting relationships. To provide virtual employees with these types of opportunities, companies have encouraged managers to schedule off-site activities and other networking events that virtual employees can attend in person. These opportunities give virtual employees the ability to engage in informal discussions with their peers, coworkers, and supervisors in order to build a greater level of trust. Conclusions and Next Steps As the workforce continues to change, companies need to provide employees with a greater amount of flexibility. The virtual workplace and the strategies to support the remote worker have continued to evolve as companies realize the cost benefits and increased demand for flexible work arrangements. Companies have continued to develop strategies that mitigate the challenges remote employees face, but there remains a need to 9

11 identify ways for remote employees to form the valuable, trusting relationships that have historically been built in face-to-face work environments. Technological advances have provided alternative mediums of communication which assist the virtual employee in engaging in both social and professional interactions to network with others in the organization. There remains limited research on the competencies of successful virtual employees and their managers. Through this research we identified a list of key competencies which closely aligned across the companies that were interviewed. Yet, it remains unclear what competencies are more or less important for managing virtual workers as compared to more traditional workers. A significant role of the manager is to ensure that remote employees have the support and resources necessary to succeed. Managers will need to build a skill set that allows them to balance the needs of both the virtual and non-virtual employee. In addition, companies have continued to develop training programs and online resources to better serve the virtual community and have created internal teams specifically dedicated to supporting this community of employees. The virtual work opportunities allow companies to retain strong talent while fostering a culture that values work/life balance. 10

12 Works Cited Davenport, T.H., & Pearlson, K. (1998). Two cheers for the virtual office. Sloan Management Review, Gajendran, R.S., & Harrison, D.A. (2007). The good, the bad, and the unknown about telecommuting: meta-analysis of psychological mediators and individual consequences. Journal of Applied Psychology, 92(6), Wang, Y, & Haggerty, N. (2008). Knowledge transfer in virtual settings: the role of individual virtual competency. Information Systems Journal, 19, Erskine, L. (2009). A question of leadership. Leadership in Action, 28(6), Golden, T, & Veiga, J. (2005). The role of virtual work in understanding the impact of supervisory relationships. Academy of Management Best Conference Paper, K1-K5. Marshall, G, Michaels, C, & Mulki, J. (2007). Workplace isolation: exploring the construct and its measurements. Psychology & Marketing, 24(3), Mulki, J, Bardhi, F, Lassk, F, & Nanavaty-Dahl, J. (2009). Set up remote workers to thrive. MIT Sloan Management Review, 51(1), Raghuram, S., & Wiesenfeld, B. (2004). Work-nonwork conflict and job stress among virtual workers. Human Resource Management, 43(2),