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Telework Facts British Telecom, which has 80,000 employees, found productivity rose 31 per cent among its 9,000 teleworkers, due to lack of disruptions, stress and commuting time. Telecommuting can also save recruitment and training costs because it builds loyalty. AT&T found two-thirds of workers offered jobs by competitors remained with the company, citing telework as a major factor in their decision. According to the Society for Human Resource Management's 2005 benefits survey, just 19 percent of companies allow some sort of job-sharing program. That compares with 33 percentof companies that offer a compressed workweek, 56 percent that provide flex time and 37 percent that allow telecommuting. According to the 2005 survey, the 15th annual one, the CCH Unscheduled Absence Survey by CCH INCORPORATED (CCH) found that while the rate of unscheduled absenteeism barely budged since last year, the average per-employee cost has risen to $660 per employee -- costing some large employers over $1 million per year. The survey also found that employee morale can affect a company's absenteeism rate, with organizations with Good/Very Good morale experiencing a 1.5-percent rate of unscheduled absences while those reporting Poor/Fair morale had a rate of 3.2 percent. The number of employed Americans who performed any kind of work from home, with a frequency range from as little as 1 day a year to full time, grew from 41.3 million in 2003 to 44.4 million in 2004, a 7.5% growth rate. 2004 American Interactive Consumer Survey conducted by The Dieringer Research Group Teleworkers who worked at home during business hours at least one day per month increased in the past year from 23.5 million to 24.1 million, a 2.6% increase. Of that 24.1 million, 16.5 million are self employed, a 4.4% increase over 2003. This 24.1 million represents 18.3 percent of employed adult Americans, nearly one-fifth of the workforce. 2004 American Interactive Consumer Survey conducted by The Dieringer Research Group In 2003 there were 4.4 million teleworkers working at home with broadband. By 2004 the number soared to 8.1 million, an 84% increase. 2004 American Interactive Consumer Survey conducted by The Dieringer Research Group According to a compensation survey of 1,400 CFOs conducted by Robert Half International, 46% said telecommuting is second only to salary as the best way to attract top talent. However, 33% said telecommuting was the top draw. CFOs were asked, "In your opinion, which one of the following incentives is most effective in attracting top accounting candidates?" Their responses: - Offering higher starting salaries than competitors - 46%
- Allowing telecommuting and/or flexible work schedules - 33%
- Offering signing bonuses - 5%
- Offering extra vacation days - 3%
- Benefits/benefit package/insurance - 2%
- Other - 3%
- Don't know/no answer - 8%
According to NORTEL, the cost to relocate an employee to another city can run as high as $100,000. It can cost $2,500 just to move an employee from one cube to another. More from NORTEL, the entire cost to outfit and equip an employee to telework is made up in the first year if only 3.5 days away from work can be saved, i.e. time lost due to a doctor's appointment, ill child, employee illness, other personal situation that requires time away from an office. That number drops to 1.5 days in subsequent years. The more than 100 MDOT (Maryland Department of Transportation) employees who telework represent a 27% increase in productivity in teleworking employees. The bottom line, according to Dow Chemical: Administrative costs have dropped 50% annually (15% of which was attributed to commercial real estate costs.) Productivity increased by 32.5% (10% through decreased absenteeism, 16% by working at home and 6.5% by avoiding the commute.) Dow Chemical CCH Inc., an Illinois-based human resource consultant, estimates that businesses lose $789 in payroll per employee per year because of emergency time off. That means employers with as few as 20 employees lose nearly $16,000 per year, while large employers with more than 2,000 workers suffer losses in excess of $1.5 million. And those figures don't take into account the cost of lost productivity or the overtime pay needed to pay others to pick up the slack. There were 4 million teleworkers in the US in 1995. Source, FIND/SVP The number of teleworkers in the US increased from 19.6 MM in 1999 to 23.6MM in 2000 to 28.8 in 2001. Source, ITAC The number of teleworkers worldwide in 2003 is expected to be 137 million. Source, Gartner Group 39% of US workers would like to telework, but only 31% feel there employers will let them. U. of Connecticut Study 17% or the workers in Finland telework. Eustats JD Edwards teleworkers are from 20 to 25% more productive than their office workers. Chicago Sun Times, 10/99 A 40 minute commute equates to 8 working weeks per year. Colorado Telework Coalition 20% of teleworkers are supervised from out of state. ITAC, 2000 Office space for the average worker costs $10,000 per year. Telework can cut corporate real estate costs from 25 to 90%. PC World The manager/staff ratio in a virtual organization is 1:40. It's 1:4 in a traditional office. Ft. Lauderdale Sentinel American Express teleworkers produce 43% more business than their office workers. Colorado Telework Coalition 63% of absentee related costs can be saved per teleworker. Compaq teleworkers are from 15-45% more productive. Colorado Telework Coalition IBM reduced real estate costs in the US by from 40-60%. Telecommuting Review More than 65 % of teleworkers are employed by companies with fewer than 100 employees. IDC/LINKFLASH Approximately 22% of teleworkers are employed by companies with more than 1000 employees. IDC/LINKFLASH 53% of teleworkers say the ability to work at home is important to their employment choice. ITAC, 1999 65% of home teleworkers are males vs. 44% of non-teleworkers. ITAC, 2000 The average commute of a teleworker when not teleworking is 18 miles. ITAC, 1999 Teleworkers save an average 53 minutes of commuting each day they don't drive to work. ITAC, 1999 Employers can save 63% of absenteeism costs per teleworker per year. ITAC, 1999 Teleworkers typically work 1-2 days per week (5.5days/month) from home. ITAC 1999 45% of teleworkers have a separate home office space. ITAC, 1999 The potential US employer annual savings through telework from reduced absenteeism, recruiting costs, and from increased productivity could be as high as $441 billion. ITAC, 1999 67% of teleworkers are married or from couple households. ITAC, 1999 Teleworker ages: 17%, 18-29 Yrs; 60%, 30-49 Yrs; 22%, 50-64 Yrs. ITAC, 1999 Teleworkers work: 38% of time at their computer, 17% on the phone, 24% on reading, research & analysis, and 9% in face-to-face meetings. ITAC, 1999 40% of teleworkers can schedule multiple personal tasks and errands on the same day that they work from home. ITAC, 1999 26% of teleworkers work before or after hours so they can meet personal tasks and errands. ITAC, 1999 Teleworkers drive 9.3 miles to run errands on days they telework. ITAC, 1999 Commuters, when adding errands to the commute, drive 7.9 additional miles. ITAC, 1999 Home teleworker have 1 PC for work and 1 PC for non-work purposes vs. non-teleworkers who have 0.8 PCs for work and 0.5 PCs for non-work. ITAC, 2000 US Regions with the highest per capita densities of teleworkers are New England, Mountain & Pacific. ITAC, 2000 33% of Canadians would prefer to telework over a 10% wage increase. Ekos Research 50% of Canadian households are on the Internet compared to 29% in 1997. Media Matrix Less than 1% of telecommuters want to stop once they have started to telecommute. Nortel Networks Industry Canada reports productivity gains of up to 50% by teleworkers. Trade-Marks Branch Ford, Delta & Intel provided computers to their 512,000 employees "…to create a competitively superior workforce." www.zdnet.com Unisys Outsourcing, with 100% of employees teleworking, reduced office space by 90%, saving $1 million annually. MWCOG, 1999 IBM Canada had teleworker productivity improvements of up to 50%. IBM, Canada Teleworkers work 39% from a spare bedroom, followed by 10.5% from the dining room. ITAC, 2000 Of home-based teleworkers, 38% desired more home teleworking. ITAC, 2000 43% of Canadians would change jobs to an employer allowing telework. Ekos Research It is estimated that 100 million US workers will Telecommute by 2010. Kiplinger, 12/00
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