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TELECOMMUTING IN THE WORKPLACE: AN OPTION FOR SMALL BUSINESS Marilyn Young, The University of Texas at Tyler A. S. McCampbell, Florida Institute of Technology Abstract Advantages, disadvantages, and successful implementation were examined. An employee survey supported the literature in confirming both positive and negative consequences of telecommuting. Employees were willing to telecommute from their offices. However, potential factors, such as employee isolation, building espirit de corps, communication, and supervision should be reviewed by management before implementing a program. These findings are important in light of growing computer technology and the increased need for small business efficiency. INTRODUCTION Numerous companies are utilizing virtual offices in an effort to increase effectiveness and overall efficiency. Benefits and advantages are cited regarding telecommuting and the use of virtual offices in today's climate of global competition (Bricknell, 1995). The number of corporate employees who telecommute has grown from 2.4 million in 1990 to 7.6 million in 1995, and 11 million is projected in 2000 as technology becomes more advanced (McNerney, 1995). Further, telecommuting represents the fastest growing segment of the 36 million households who work at home--8.8 million in 1993 (Romei, 1995). By the year 2000, some 57% of the U.S. workforce will telecommute (Smith, 1994). In addition, as rental costs increase exponentially, businesses have turned to telecommuting to reduce space requirements and to become more competitive in the marketplace (Hoewing, 1994; Romei, 1995; Walker, 1995). It seems appropriate that small business owners should investigate this option as a method to increase efficiency. REVIEW OF THE LITERATURE Previous studies were reviewed in terms of advantages and disadvantages of telecommuting. In addition, trends and effective methods of implementation were examined. This section includes case studies, projections, and employee/employer surveys. Advantages of Telecommuting Three major factors which caused an increased interest in telecommuting were: Clean Air Act, technological advances, and high rental costs (Romei & Femberg, 1995). As part of organizational restructuring and corporate downsizing, numerous
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companies are utilizing ..virtual offices" in an effort to increase effectiveness and overall efficiencies. These offices are staffed by employees who frequently telecommute, use Internet information resources, and share office space and equipment for brief periods of time. Such offices offer companies flexibility in size and composition of the workforce and showed productivity gains of between 15% and 20%, while saving rental costs. In addition, workers who previously found it difficult to work outside the home now use telecommuting to participate in the workforce. Corporate executives and managers accessing the Internet may utilize both people and information to improve operations and to market products (Snizek, 1995). Romei and Femberg (1995) found employees who have home offices routinely put in a few hours over the weekend "just because it's there." Working at home allows employees to keep their own hours and work in casual clothes. Also, employees reported having greater flexibility in workflow and in managing home life, as well as a sense of shared commitment (Romei & Femberg, 1995). Matthes (1992) stated that many employees favored telecommuting, since it allowed them to spend less time commuting to work. However, only 15% of employers had offered telecommuting to employees. It was important that employers consider reasons for implementing the program, such as enabling employees to balance family schedules and reduce air and traffic congestion. Caudron (1992) noted that Travelers' telecommuting policy was decided by both employees and supervisors to determine if their jobs were applicable to telecommuting. They perceived that training and employee support were vital to its success and reinforced its management by objective philosophy. Further, they noted that employees who desired the program should be self-motivated, have both good time management and organizational skills, and maintain a high level of productivity. McNerney (1995) found advantages to be: (1) high productivity; (2) reduced absenteeism; (3) lower facilities cost; (4) access to a larger domestic market; and (5) access to a global labor force. Bricknell (1995) reported reduction in cost and a significant improvement in production to be major benefits for organizations using telecommuting. Despite assets and liabilities of telecommuting programs, human resource managers were much more positive about the advantages than they were negative about the disadvantages. Telecommuters were perceived to be more productive, to produce better work, and to be more satisfied as a result of their participation. Telecommuting yielded the expected savings in office space and seemed to cost marginally less than traditional employees in terms of human resource services (Ford & McLaughlin, 1995). According to Technologies international Corp, the benefits of
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virtual offices included: (1) an ability to reduce real estate costs by 20% and (2) improvements in employee morale (Smith, 1994). Greengard (1994) stated that the virtual office uses leading edge technology and new concepts which redefine work and job functions by enabling employees to work from virtually anywhere. Businesses that successfully incorporate virtual arrangements are able to reduce real estate costs and adhere to air quality regulations by curtailing traffic. Employees are better able to manage their work, personal life, and are often happier, creative, and productive. Hence, the human resource department must lay the infrastructure to support a mobile work force and provide guidance for workers and managers (Greengard, 1994). Disadvantages of Telecommuting Despite its many advantages, lack of adequate hardware, software, or experience in computer applications, and high initial costs may be evident (Theisen, 1995). Also, costs include providing communication equipment, such as fax and answering machines, computer, and software. However, normally, this equipment is already provided for employees (Bricknell, 1995). Other disadvantages included employee isolation; lack of input and feedback and dealing with distractions at home (McNerney, 1995). Potential disadvantages to both employee and employer included ernployees' feelings of isolation and the alienation resulting from the sharing of company-owned property and equipment (Szinek, 1995). Also, Romei and Fernberg (1995) indicated a drawback to be the lack of interaction with other employees. Hence, not only may employees be overlooked at the main office when informal announcements or plans are made and discussed, but they may fear being invisible when promotions and performance evaluations are made. Further, concentration may be more difficult for a home office worker due to interruptions (Romei & Femberg, 1995). Rittershaus (1994) found problems in performance reviews and remaining a team member "in absentia." In most instances, wages of telecommuters were lower than others. Another difficulty was marital and family tensions stemming from the merging of home and office. Also, telecommuting may result in companies no longer needing to have staff meetings in the traditional sense. Similarly, a company need not employ personnel on a continuous, full-time basis, but rather selected experts on a situational basis as circumstances demand. Therefore, long-term consequences may result in the lack of faceto-face interactions at meetings and a sense of organizational community (Szinek, 1995). Some see telecommuting as a source of added stress at home,
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alienation from coworkers, or a barrier to promotion (Cooper, 1995). Telecommuters should not become disenfranchised from a relationship with the organization through separation from the traditional work site and the camaraderie of coworkers (Ford & McLaughlin, 1995). Effective Implementation Sorohan (1994) found that training made the difference in successful implementation of a telecommuting program. Organizations should not overlook training and development needs and include both the employees and managers in training sessions. They should use mentors, keep workers current on in-office procedures, and encourage them to attend conferences and stay abreast of developments in their fields (Sorohan, 1994). Since telecommuters do not work in an office, they must focus almost exclusively on the bottom line which should make their present known (Rittershaus, 1994). One key to telecommuting success lies in creating a work area at home that is used strictly for work. Since working in isolation will not generally help the cause of telecommuting, employees should spend approximately half of their time interacting and networking with people with similar skills to stay visible and keep abreast of the latest developments in the industry. Also, drawbacks fell in the area of performance reviews and difficulties of employees remaining team players "in absentia." Rittershaus (1994) found two keys to success were: (1) Create a work area used strictly for work and (2) Create a 50/50 rule-work in isolation 50% and the rest with personal networks. Cooper (1995) found guidelines for starting a telecommuting program to be: (1) Review employee positions to determine those best for telecommuting; (2) Lay a solid foundation by training telecommuters; (3) Provide the telecommuters with the proper equipment and the support (Cooper, 1995). Matthes (1992) outlined five steps to implement a program: (1) Counsel senior management (2) Create a prototype group; (3) Establish a formal selection process; (4) Train the telecommuter team; and (5) Monitor and fine tune the program. Rittershaus (1994) stated that companies are not yet comfortable with their teleworkers. Research suggests that middle managers perceived teleworkers as a problem for the company and difficult to manage. Further, potential or existing teleworkers were concerned over career prospects and contractual employment details. For teleworking to be implemented, these managerial difficulties must be resolved (Pancucci, 1995). Also, implementation problems included attitudes toward telecommuting and lack of expertise in telecommuting (Rittershaus, 1994).
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Trends in Telecommuting The telecommuting movement in the U.S. has stalled, at least temporarily (Bjerklie, 1995). According to Becker of Cornell University, the underlying problem is that most companies offered telecommuting as a special accommodation for a few select employees, typically young persons. Ultimately, such a policy was not in the best interests of the employees, manager, or company, since it is, by definition, unfair (Bjerklie, 1995). Companies should devise jobs such as rotating offices, open workstation modules, or "telework centers" (Small groups of employees who live in the same suburb can report to work near home). Some estimate that 20% of the workers desire to telecommute. However, many who try it may return to the regular routine (Bjerklie, 1995). Teleworking is increasing in the UK and is growing throughout Europe. The European Union believes that the concept could counter the decline in permanent jobs within companies and rejuvenate rural economies through professional teleworkers and telecenters (Pancucci, 1995). However, despite the overwhelming positive impacts, many mangers may not try it. The primary reason reported by managers was fear of losing control and distrust of employees they can not see. This fear might be attributed, in part, to risk aversion, given lack of information. Companies with little work autonomy who use time-based methods of work supervision and whose decision-making processes are centralized and hierarchical my find it difficult to implement. Humble (1995) found that currently most telecommuters work for companies with fewer than 100 employees. These programs are growing fastest among organizations that are very small (fewer than ten employees) or those having more than 100 employees (Humble, 1995). Hence, successful programs should be well planned with appropriate technology and feasible tasks necessary for telecommuting. Important factors were: (1) training given to employees and supervisors; (2) providing necessary technical support; and (3) providing reasonable wages and benefits. Further, successful telecommuters should be technically skilled and have substantial professional experience. Telecommuters tended to look for different kinds of satisfaction from their work; were generally self directed; and preferred to work with less social interaction. For example, telecommuting engineers would be more interested in the challenge and intrinsic interest of problem solving while those engineers in the office would derive most of their satisfaction from interactions with teams, managing others, or status. Recent surveys of telecommuters reported their major reason for working at home was the ability to get more work completed. Some managers feared or predicted
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that employees would become isolated from the organization and be overlooked for promotions. Some satellite telecenters provide social interaction among the telecommuters to help prevent feelings of isolation. State and national government have supported telecommuting for its positive effects on the environment, the organization, and employees. These programs resulted in flexibility, reduced stress, increased work control, time, and living spaces, and a greater sense of loyalty (Humble, 1995). As both communication devices and the growing need for flexible working hours increase, telecommuting will increase within the accounting profession and provide improvements to quality of life at the workplace. However, unless management believes and supports the program, it may fail (Theisen, 1995). Due to technological advances, the number of corporations with employees who work at least part of the time from a home office had increased. Companies have saved $3,000 to $8,000 per telecommuter per year by the reduction in office real estate and increase in productivity (Romei & Fernberg, 1995). Emerging technologies will involve new workplace opportunities. This view is supported by such considerations as employee morale, economic disadvantages, environmental considerations, disabled employees, and legal requirements. The workplace is undergoing changes due to rapid advances in technology and government mandated shifts in employee transportation (Walker, 1995). Solomon (1993) found that telecommuting has become more widespread in Canada. A survey of practices revealed 27% have already introduced telecommuting compared to 21% in Solomon and Templer's 1989 study. The most important reasons for implementing telecommuting were efficiency concerns, reducing costs, and increasing productivity. The success of development and training for telecommuting will rest on the vision and commitment of senior executives (Solomon & Templer, 1993). Humble (1995) found telecommuting offered attractive benefits for engineers and other high-tech professionals. Telecommuting benefits which were emerging were: (1) less air pollution; (2) less crowding in cites; (3) lower demand for fossil fuels; and (4) less wear on the transportation systems. Creating jobs in off-site rural areas has become the policy of several innovative companies. Before telecommuting may be undertaken successfully, the organization must possess the needed technology; must identify appropriate tasks and employees; and must possess structural support for telecommuters and their supervisors (Humble, 1995). METHODOLOGY
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The objective of the survey was to determine employee perceptions regarding the possibility of changing their work environment to telecommuting. The literature provided many potential consequences of telecommuting; therefore, it seemed appropriate and necessary to ascertain confirmation from employees. Perceptions were obtained from a survey of 87 clerical employees. The three-page questionnaire was designed, for the most part, using a 7-point Likert scale to obtain responses to 23 statements. The scale represents the following: 1 = strongly disagree; 2 = disagree; 3 = slightly disagree; 4 = neither disagree or agree; 5 = slightly agree; 6 = agree; and 7 = strongly agree. These statements pertained to both potential positive and negative consequences of telecommuting and were interspersed within the survey instrument. After examining previous studies, the major consequences were: Potential Positive
Potential Negative
Environmental Flexibility Decreased cost Increase motivation Improved environment Improved quality of work life
Lack of social interaction Communication problems Communication problems Supervisory problems Lack of espirit de corps Disruptions at home
Means and standard deviations of the 24 statements were computed. These statistics were ranked according to the potential negative and positive consequences of telecommuting. FINDINGS A wide majority of the employees, 90%, reported they presently did not have the option of telecommuting. However, approximately three-fourths of the employees stated they would be interested if the opportunity were available. Approximately 32% indicated they knew someone who telecommuted. Table 1 shows the means and standard deviations of the 24 statements which were potental consequences of telecommuting and segmented according to both positive and negative attitudes. Positive Perceptions of Telecommuting The employee perceptions of the survey results supported the literature regarding advantages of telecommuting. Table 1 shows all 12 positive factors had mean scores ranging from 5.71 to 4.0. The highest mean scores of employee perceptions were: (1) Advantageous to set own hours; (2) Reduces pollution; (3) Advantageous if one has a family, and (4) Flexibility for parttime workers; and (5) Savings for the individual and the company.
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Employees having mean scores of 4.5 to 5.0 indicated that they slightly agreed with the following: They were highly motivated to give the best effort; allowed company to operate without overhead; and they were able to keep up with the latest technology. Employees were somewhat neutral in regarding the variety in their jobs, still "putting forth a great deal of effort," and the company saving money by installing equipment at home. Negative Perceptions of Telecommuting Potential negative factors of telecommuting were measured and mean scores from 4.95 to 3.61 were computed. Employees tended to agree that they would miss the interaction and have difficulty in communicating with other employees. However, they agreed that they would still make a visible impact for the company. Employees were uncertain and somewhat neutral regarding effective supervision with mean scores of 4.33-4.10 in that category. Also, employees were neutral as to whether upper management would be aware of their contributions, as well as the supervisors' concern and guidance. Additionally, they were neutral as to the difficulty of communication and networking with other employees. Further, respondents were uncertain regarding distractions at home and building espirit de corps, both yielding mean scores of 3.61. DISCUSSION These findings are important in light of growing computer technology and the increased need for efficiency among small business. Generally, these findings also support the literature in confirming both positive and negative consequences of telecommuting. The results of this research identified employee perceptions which should be addressed by small businesses. The survey indicated that employees were willing to telecommute from their offices to the workplace. Although many employee perceptions of telecommuting were positive, potential problems with this new work design must be overcome. Such factors are: employee isolation, building espirit de corps, lack of communication with other employees, and supervision. Employees were uncertain as to whether their contribution would be known by management. In light of changing work environment, the growing computer technology, increasing need for efficiency, and environmental concerns, these findings are important for small businesses. Before recommending or starting a program, pros and cons of telecommuting should be identified. A review of employee positions, training, and providing necessary equipment and support are important. Also, planning and monitoring of such programs is necessary. Employees should be given necessary
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support, such as hardware, software, and clerical. Supervisory method should be examined and geared to make certain employee contributions are known. Methods to increase communication and develop espirit de corps should be reviewed and assessed. Also, self-supervision should be considered as a major management tool. A high-tech workplace alternative is an important issue that small businesses should not ignore. If properly implemented through planning, training, and monitoring, telecommuting may be advantageous to small business owners. Table 1 Employee Perceptions of Telecommuting Employee Perceptions of Telecommuting _______________________________________________________________________ ______ Potential Positive Consequences Mean Std . Dev. Advantageous to set your own work hours 42 Reduces pollution 11 Advantageous if one has a family 41 Flexibility for part-time workers 45 Provides a safer work environment 31 Saves money for company and individual 24 Highly motivated to give my best effort 61 Allows company to operate without overhead. 61 Able to keep up with latest technology 63 Still have variety in job. 53 Put a great deal of effort above what was required 53 Company would save money by installing equipment in home 43
5.71
1.
5.71
1.
5.51
1.
5.41
1.
5.41
1.
5.10
1.
4.80
1.
4.61
1.
4.52
1.
4.51
1.
4.34
1.
4.00
1.
4.95
1.
4.82
1.
4.74
1.
Potential Negative Consequences Miss interaction with other people 41 Difficult to communicate with other employees 61 Make a visible impact for my company
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71 Supervisor still be concerned about me 60 Hard for supervisor to give employee guidance 60 Upper management would be aware of my contribution 43 A great expense to the company 50 Difficult to communicate/network with other employees 71 Able to have help and access to coworkers 60 Too many distractions at home 72 Does not build "espirt de corps" 63
4.33
1.
4.23
1.
4.12
1.
4.10
1.
3.90
1.
3.84
1.
3.61
1.
3.61
1.
REFERENCES Bricknell, G. (1995). "Time You Did Your Homework," Management Services, 39(9) 28-29. Bjerklie, D. (1995) "Telecommuting: Preparing for Round Two," Technology Review. 98(5) 20-21. Caudron, S. (1992). "Working at Home Pays Off," Personnel Journal, 71(11): 40-49. Cooper, R.B. (1995). "Should Your Employees Go to the Office?," Managing Office Technology, 40(9) 45-46. Ford, R.C. & McLaughlin, F.(1995) "Questions and Answers and Telecommuting Programs," Business Horizons, 38(3); 66-72. Greengard, S. (1994) "Making the Virtual Office a Reality," Personnel Journal, 1994, 73(9): 66-70. Hoewing, National Real Estate Investor, October, 1994, 30. Humble, J., et al, (1995) "Benefits of Telecommuting for Engineers and Other High-Tech Professionals," Industrial Management. 37(2): 15-19. Knight, F.S. (1992). "Telecommuting: Balancing Business and Employee Needs," HR Focus, 69(12): 3. McNerney, D.J. (1995). "Telecommuting: An Idea Whose Time Has Come," HR Focus 72(11): 1,4.
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Pancucci, D. (1995). April, 1995.
"Remote Contror" Management Today. 78-90,
Rittershaus, G.J. (1994), "How to Be a Successful Telecommuter: A Practitioner's Viewpoint," Telecommunications, 28(10): 72-73. Rornei, L.K. & Femberg, P.M. (1995) "Work Smarter, Work Smaller," Managing Office Technology, 40(2): 26-27. Snizek, William E. (1995) "Virtual Offices: Some Neglected Considerations," Communications of the ACM. 38(9): 15-17. Smith, B. (1994) 71(11): 16.
"Welcome to the Virtual Office," HR Focus
Solomon, N.A.& Templer, A.J. (1993). "Development of NonTraditional Work Sites: The Challenge of Telecommutng", Journal of Management Development, 12(5): 21-32. Sorohan, E.G. (1994). "Telecommuting Takes Off," Training & Development, 48(9): 9-11. September, 1994. Theisen, B.A. (1995). "Telecommuting, An Option for Improving the CPA's Work Environment" The CPA Joumal, 65(10): 66-68. Walker, K.D. (1995). The Experts Opinion, Information Resources Management Journal, 8 (1): 35-36.
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