URBAN PARTNERSHIP AGREEMENT TELECOMMUTING Adeel Lari State Local and Policy Program, HHH University of Minnesota July 10, 2008 WHY TELECOMMUTE? Telecommuting is the most cost effective and fastest method to reduce congestion Only 2.9% of the Minneapolis workforce telecommutes UPA TELECOMMUTING PROGRAM OBJECTIVES Federal Telecommuting What Can be done ? Securing agreements from major area employers to establish or expand telecommuting and flex scheduling program UPA Requirement Increase the use of Result Only Work Environments (R.O.W.E.) within the region UPA Telecommute Program Objectives Reduce congestion Increase telecommuting TELECOMMUTING OPTIONS Traditional Telecommuting Allows employees to work from home via the internet Flexible work arrangements build trust Focus on performance and hours—employer policies apply ROWE—Results Only Work Environment Deep impact on the business culture, operation and mindset of the management and personnel No schedules. People make choices about where and when work is done. Free to work where ever you want, when ever you want, as long as the work gets done. ROWE Attributes The focus is on results and results only. Establishes the ultimate state in work flexibility Allows every employee the freedom to do their best work the way they work best ROWE Provides Equal opportunity for all to participate regardless of job duty or job level Incentive to work where/when it’s best for business and personal pursuits Opportunity for SUSTAINABLE change Flexible work arrangements ROWE work environment No permission needed Permission required Employee managed Management controlled Based on the work Based on hours and work Requires accountability Requires policies/guidelines Focus on “the work” Focus on hours and work TELECOMMUTING BENEFITS Universal Telecommuting Benefits Reduce Congestion Energy Conservation Environment Preservation Enhanced Safety Improved Health Corporate Telecommuting Benefits Cost Savings Premise costs Office overhead costs Labor Increased Productivity & Motivation A flexible and independent work environment leads to increased productivity as well as elevated motivation and morale Less absenteeism Corporate Telecommuting Benefits Employee and Skill Retention Retain the “sandwich” segment—Boomers tasked with caring for both children and aging parents “Career Break” Retain employees part-time Employees are less motivated to leave Training costs reduced with higher retention rates Flexible Staffing Hiring talent not limited to geographic area ROWE Results Culture RX reports an average of 35% productivity increase at Best Buy Significant retention increase Voluntary Turnover Rate Involuntary Turnover Rate INDIVIDUAL BENEFITS Individual Telecommute Benefits Savings! Today gas prices are top-of-mind Weekly commute costs are sky rocketing Time savings is a high priority for busy families Individual Telecommute Benefits Life Quality & Balance A better balance between work and family Reduced stress related to rush hour commute More time for health and wellness activities Better Health + Less Stress = More Work Focus TELECOMMUTING BARRIERS Telecommuting Barriers Technology is no longer a telecommuting barrier—the challenge for corporations is a cultural barrier Telecommuting Barriers Management by Observation vs. Objectives Corporations need to shift measures on results Commitment to better monitor & measure results Telecommute programs force reliable results measurement Telecommuting Barriers Perception telecommuters are loafers Some employees perceive telecommuting a hindrance to career advancement Negative perception mainly created by employers An embraced telecommute program alleviates employee apprehension and resistance Telecommuting Barriers Telecommuting is not for everyone Those with poor personal motivation Young employees just entering the workforce Going to work is an important aspect of life— social & skills value Not all work task are best performed or appropriate for a telecommute setting. Some types of work value team synergy and the rub off effect TELECOMMUTING FUTURE Telecommuting Future Telecommute programs are expected to become a viable planning element to: Reduce congestion and pollution Preserve and protect the environment Our weak economy may help drive support for increased telecommuting programs Work plan for UPA UPA STEERING COMMITTEE TELECOMMUTE STEERING COMMITTEE MANAGEMENT MARKETING EDUCATION IT CONSULTING R.O.W.E. CULTURE RX TRADITIONAL TELECOMMUTE MEASUREMENT & EVALUATION U of M Research – NIH Funded 2 year study to understand how a ROWE affects health/well-being. Research findings support a ROWE as having the long-term potential to change work behavior and in turn affect commuting behavior Employees in a ROWE are ‘less apt’ to commute vs. the control group, instead choosing to work other places besides the ‘office’ Employees in a ROWE report having less of an increase in commute times vs. the control group– choosing other times to commute other than ‘rush periods’. Tribune Editorial Putting aside the private benefits and drawbacks, telecommuting is a clear winner from a public policy standpoint. Every worker at home is one fewer worker burdening the roads and public transportation systems. Designing public policies and infrastructure to increase the at-home workforce can have both public and private benefits.