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Telework Toolkit - Benefits of Telework#

Understanding the benefits of teleworking can encourage behavior change and help with employee and employer buy-in when implementing teleworking programs. Research has steadily shown that teleworking increases employee productivity, benefits the environment, contributes to employee and employer cost savings, and can lead to improved health due to a better work-life balance, higher morale, and lower stress levels.  

Overview of Benefits#

Benefit Employee Employer Environment Community
Increased employee productivity X X   X
Reduced spread of illness X X   X
Reduced carbon footprint   X X X
Talent attraction and retention   X    
Improved employee morale - better work/life balance X X    
Reduced overhead costs   X    
Fewer parking and commuting expenses X      
Improved customer service   X   X
Saves the equivalent of 15 to 25 workdays a year—time otherwise spent commuting  X      
Less commuting stress  X      
Fuller employment opportunities  X X   X
Reduced traffic congestion & crashes      X X
Relieves strain on transportation infrastructures        X
Improved disaster preparedness        X

 

Flexibility & Productivity#

Research has shown that teleworking and flexible work schedules benefit both the employer and employee. both the employer and the employee. It increases productivity, leads to fewer distractions, less (to no) time commuting, improved work/life balance, and increased loyalty and engagement.  

Research and News Articles

  • A 2012 report from the Society for Human Resource Management (SHRM) shows that 91% of Human Resource professionals agree that flexible work arrangements positively influence employee engagement, job satisfaction and retention, which leads to increased productivity. SHRM’s report presents research showing how flexibility increases this productivity, as well as how to successfully implement workplace flexibility.   
  • This article from the American Psychological Association states that teleworkers have better performance while teleworking compared to working in the office.   
  • This Psychological Science in the Public Interest research review from 2015 shows that teleworking increased job satisfaction, performance, feelings of commitment to an organization and decreased work stress and exhaustion. 
  • Flexjobs.com, a Boulder, CO based company, reported promising statistics about teleworking. For example, 85% of companies say their productivity has increased because of greater flexibility.  
  • The Society for Human Resource Management (SHRM), discusses the benefits of flexible work options and how it is critical to retention noting that teleworking helps with recruiting efforts and helps retain, attract, develop, and engage employees. It also broadens the talent pool, allows employees to complete work when and how they want, and helps with diversity and inclusion. 
  • Gallup finds that, in general, workers thrive when they have the flexibility to work from home during part of their work week. This is important because thriving employees have 53% fewer missed days due to health issues and substantially lower disease burden due to depression, anxiety, high blood pressure, diabetes, heart attack and chronic pain.  
  • Gallup also finds engaged workers who have reasonable flexibility in the workplace experience higher wellbeing while having reasonable control over how and when their work gets done. Flexible schedules also help expand the hiring pool by allowing people from different locations to work without having to relocate. 
  • Telework.gov looks at how workplace flexibility supports employees with caregiving responsibilities. Parents.com has some great tips on how to manage working at home and child care responsibilities.
  • Bill Gates knew in advance that companies must offer remote work to hire and keep the best workers. 82% of US office workers say they want to continue to work from home, at least weekly, when the pandemic is over.
  • Remote work can enhance workplace diversity by opening up the workplace and widening opportunities for those who have been marginalized in the past.

Success Stories 

  • The Telework Enhancement Act Pilot Program (TEAPP) was started pre-COVID and transitioned 600 patent examiners to a work-from-anywhere policy over 24 months at the US Patent and Trademark Office (USPTO). In this article from Harvard Business Review, researchers found an increase in productivity among all examiners by 4.4 percent, among other positive results. 
  • pilot work flexibility program was done in 2016 and the results showed that workers who participated were impacted positively compared to those who did not participate. Employees who participated showed higher job satisfaction, reduced levels of burnout and psychological stress, felt more control over their schedules, support from their bosses, and were likely to say they had enough time to spend with their families compared to the employees who did not participate.   
  • Kitsap conducted a pilot telework project that showed employees felt they had more schedule flexibility, which made them more productive, and they enjoyed eliminating commute time and reducing stress. Participants in the pilot project also saved pounds of CO2.  
  • Although working from home has its challenges with technology, and balancing work with family duties, Forbes says that still 9 in 10 workers want to work from home after the pandemic due to benefits such as saving commute time, enjoying hobbies and saving money.   
  • Way to Go, a program of the Denver Regional Council of Governments (DRCOG), conducted a survey in partnership with the Colorado Society for Human Resource Management (SHRM) which showed the Denver workforce desiring long-term teleworking practices post COVID-19. For example, 76% reported they were either just as productive or more productive working remotely.  

On average, people in Fort Collins spend about 40 minutes traveling to and from work each day. Teleworking a few days a week is a key tool to reducing our carbon footprint, pollution, and our greenhouse gas emissions. Teleworking can lead to healthier lifestyles, higher morale, lower stress levels, and lower absenteeism. This decrease in commuting along with work flexibility during the day allows employees to fulfill a work-life balance such as spending more time with family, meditating, eating healthier, and exercising more. 

Teleworking provides the following transportation and health related benefits:  

  • Improving employee’s health (both mental and physical) 
  • Creates better habits/routines 
  • Employees stay home when sick 
  • Lowers health care costs 
  • Reduces the need for mass parking 
  • Reduces traffic congestion 
  • Reduces employee delays with commuting 
  • Reduces road and vehicle wear and tear  
  • Reduces transportation-relayed CO2 (or greenhouse gases) levels 

The City of Fort Collins' SHIFT Your Ride campaign encourages community members to Shift their ride just one trip per week to a sustainable transportation mode whether it be walking, biking, scooting, taking the bus or simply staying home and teleworking.  

Research Findings 

  • Transportation is now the largest source of U.S. greenhouse gas emissions, and this article from Scientific American shows how teleworking can help combat climate change. For example, as a whole the U.S saw a significant drop in energy usage during the Covid-19 pandemic, which has a positive affect on the environment.    
  • According to Global Workplace Analytics, 56 percent of the American workforce currently hold telework-compatible jobs. If those people worked from home half the time, it would reduce greenhouse gas emissions by the equivalent of taking the entire New York state workforce off the road.    
  • According to an IQAir report, the slowdown of economic activity during the pandemic has the potential to reduce fine particulate air pollution by as much as 60%.  

Success Stories 

  • San Francisco’s Metropolitan Transportation Commission voted in July of this year to mandate that large Bay Area employers keep 60% of their workers home each workday as part of a 2050 planning strategy to reduce greenhouse gas emissions and traffic congestion.  
  • This Forbes article, discusses how teleworking increases productivity, reduces travel, and reduces CO2. For example, if the half of workers who could work from home did so just 1 day per week, it would result in an annual CO2 reduction of 2.5%.  
  • Times Union article, highlights that New York has set a goal to reduce its greenhouse gas emissions by 85% by 2050. Teleworking is playing a role in reducing transportation, which accounts for over a third of emissions in NY. The city saw a 25 percent decline in fine particulate matter during the height of the Coronavirus pandemic when workers shifted to teleworking.  
  • The Utah Clean Air Partnership (UCAIR) recently published the results of a survey showing that employees benefit from less commuting, saving money, and spending time with family. For example, 61% of employers reported improved employee attitudes/mental health, and 72% increased time with loved ones.  

Cost Savings#

Perhaps one of the biggest motivators for switching to a teleworking model is because of the cost savings to both the employee and employer. Everyone loves saving money, and teleworking does just that.  

Global Workplace Analytics has done extensive research on the benefits of teleworking and has free cost savings calculators for both employers and employees. For the employer, it estimates the costs savings in terms of productivity, real estate savings, reduced absenteeism, and reduced turnover. For employees, it calculates savings in terms of travel, food, parking, dry cleaning, and reduced commuting.  

Employer telework savings calculator 

Employee telework savings calculator 

Examples of Reduced Costs  

In Toronto, 95% of surveyed city staff expressed an interest to continue working from home, potentially reducing its office floor space by 33%. Over a 25 year period, the city could see $1.2 billion (CAD) in both unlocked land value and cost savings.

Susan Heathfield, a HR and management consultant, pulled together statistics about teleworking, that show savings for both the teleworker and the employer. For example, a company can save over $11,000 per year per employee due to saved costs in real estate, electricity, security, absenteeism, turnover and productivity. Costs can be decreased or eliminated by reducing the following: 

Employment Costs Operating Costs Environmental Health

 

  • Office space 
  • Office supplies 
  • Furniture 
  • Equipment and  Maintenance 
  • Cleaning 
  • Security 
  • Utilities
  • Fleet and parking
  • Commuting 
  • Parking 
  • Oil and Gas 

Success Stories 

In this article from business.com, Sun Microsystems identified savings of $68 million a year in its real estate costs, while Dow Chemical and Nortel have saved over 30% on non-real estate costs. According to Global WorkplaceAnalytics, almost 6 out of 10 employers identify cost savings as a major benefit of teleworking. These savings come from rent, utilities, cleaning services, food, and taxes.  

Upwork, an online remote job site, conducted a survey among 1,000 workers currently working remotely to see how much time they are saving without a commute. The survey found that those working remotely saved an average of 49.6 minutes a day, and that commuters who were commuting by car prior to the pandemic have saved over $2,000 each since mid-March, including the costs to the public from their driving. 

Alaska Airlines adopted telecommuting as an alternative work environment to reduce 39 employee-related costs, improve customer service relations, and improve their employee's work/life balance and reported 50% savings in costs related to real estate which was approximately $250,000.