Telework!Va Research Study: The Tidewater Market Prepared By The Pulsar Advertising Team Southeastern Institute of Research Spring 2004 1 Background & Methodology • A quantitative online research study among corporate decision makers of large and small businesses in the Tidewater area – Sample supplied by the Hampton Roads and Virginia Peninsula Chambers of Commerce • Interviewing conducted June 2 – July 2, 2004 • This report based on 228 completed interviews • Maximum statistical error (at 95% confidence level) is +/- 6.5% Objective • The overall objective of this study is to understand what elements to import from the current Northern Virginia Telework!Va program to Tidewater. • Specific objectives include: – Identify the best prospects and potential demand for Telework!Va services in Tidewater – Provide input into the ideal packaging and bundling of the existing Telework!Va services – Identify the most meaningful selling messages and communication channels for program roll-out in Tidewater. Profile of Tidewater Employers • Professions: – – – – – – – – – – – – • Job Titles: Professional Services: 23% Sales/Customer Service: 16% Manufacturing/Distribution: 13% Marketing/Advertising: 7% Finance/Investment: 5% Government: 5% Non-Profit: 5% Education: 4% Engineering/Architecture: 2% Phone/Communications: 1% Hospitality: 1% Other: 18% • Gender: –Male: 63% –Female: 37% – – – – – – – – – President/CEO: 37% General Manager: 17% HR Director: 4% CFO: 4% Vice President: 4% Chairman: 1% IT Manager: 1% Marketing Director: 1% Other: 31% • Average Number of Employees: – 157 Employees • Average Age: –47 Years of Age Metro Tidewater Area Employers’ Perspective On Air Quality And Traffic Congestion 5 Almost All Of Tidewater Employers Rate The Area’s Quality Of Life Favorably 39% rate it “Excellent” 0% 20% Excellent 40% 60% Good Q 1: Overall, how would you rate the quality of life in the Metro Tidewater area? Fair 80% Poor 100% Virtually All Employers View Traffic Congestion As A Bigger Problem Than Air Quality 97% say traffic congestion is a problem Traffic Congestion Air Quality No 3% Don't Know 18% Yes 36% No 46% Q 2/3: Do you believe an air quality/a traffic congestion problem exists in Metro Tidewater? Yes 97% Employers Currently Offering Work Commute Assistance Have A Greater Appreciation For Air Quality Problems Traffic Congestion Air Quality 0% 20% 40% 60% 80% Offers Work Commute Assistance Does Not Offer Work Commute Assistance Q 2/3: Do you believe an air quality/ traffic congestion problem exists in Metro Tidewater? 100% Transportation and Traffic Congestion Issues Have A Definite Perceived Impact On Employee Productivity Affect of Transportation/Daily Commute Issues On Employees Affect of Traffic Congestion on Employee Productivity None 4% None 9% High 37% High 28% Low 25% Low 18% Medium 38% Medium 41% Q 5: How would you describe the affect transportation/daily commute issues have on your employees? Q 6: How would you describe the affect traffic congestion has on your employees’ productivity? Most Top Executives Are Sensitive To The Impact Of Traffic Issues On Employees Chart reflects responses of ‘high’ and ‘medium’ only Affect of Transportation/Daily Commute Issues on Employees Affect of Traffic Congestion on Employee Productivity 0% Other 20% HR Director 40% 60% GM 80% 100% President Q 5: How would you describe the affect transportation/daily commute issues have on your employees? Q 6: How would you describe the affect traffic congestion has on your employees’ productivity? The Larger The Company, The More Likely They Are To Feel The Affects Of Transportation/Daily Commute Issues On Employees While Company Size Has No Bearing On Views Of Employee Productivity Chart reflects responses of ‘high’ and ‘medium’ only 100% 80% 60% 40% 20% 0% Affect of Transportation/Daily Commute Issues On Employees < 20 Employees 20 - 99 Employees Affect of Traffic Congestion On Employee Productivity 100 - 499 Employees 500 + Employees Q 5: How would you describe the affect transportation/daily commute issues have on your employees? Q 6: How would you describe the affect traffic congestion has on your employees’ productivity? Most Employers Feel A Responsibility To Help Resolve Area Congestion/Air Quality Problems Employer Responsibility In Solving Area Congestion/Air Quality Problems None 4% High 12% Low 27% Medium 56% Q 4: How much responsibility do you believe an employer has in helping to solve congestion and air quality problems in the area? Larger Companies Feel More Of A Responsibility In Resolving Area Congestion & Air Quality Problems Chart reflects responses of ‘high’ and ‘medium’ only 100% 80% 60% 40% 20% 0% Responsibility To Help Resolve Area Congestion & Air Quality Problems < 20 Employees 20 - 99 Employees 100 - 499 Employees 500 + Employees Q 4: How much responsibility do you believe an employer has in helping to solve congestion and air quality problems in the area? Yet, Few Employers Currently Offer Their Employees Work Commute Assistance No, But Used To 2% Don't Know 2% Yes 15% No, Never Have 81% Q. 7: Does your company currently offer any type of assistance, other than free parking, that help employees with their work commute? Key Finding # 1: Tidewater employers recognize the area congestion/air quality problems and its affect on their workforce. While most feel a responsibility in addressing these issues, few offer employees work commute assistance programs. Strategic Implication: Position work commute assistance programs and Telework!Va as an effective, sensible way employers can act on their sense of responsibility and directly benefit themselves. 15 Work Commute Assistance Programs 16 Of The Small Minority That Offer Programs, Flex Time And Telecommuting Are The Most Popular Work Commute Assistance Programs* Among only those who currently or used to offer employee work commute assistance* Alternative Work Schedules/Flex Time Telecommuting Carpool/Vanpool Assistance Transit Fares Subsidies Reserved Parking For Car/Vanpool Other Responses 0% 20% 40% 60% 80% 100% Q 8/8a: What type of programs does/did your company offer to employees to assist with their work commute? * Data represents only 37 respondents or 16% of the total sample Employers Find Their Commute Assistance Programs Most Effective For Retention And Productivity* Easier To Recruit Quality Employees Improved Employee Retention Increased Employee Productivity 0% Very Effective Not Effective At All 20% 40% Somewhat Effective Don't Know 60% 80% 100% Not Very Effective Q 9: How would you rate the overall effectiveness of your employee commute assistance programs in terms of the following business concerns? * Data represents only 37 respondents or 16% of the total sample Key Finding # 2: Among those that do offer work commute programs – they have a positive reputation as the majority feel they are effective for retention and enhanced employee productivity. Strategic Implication: Link work commute programs/Telework!Va directly to employer benefits. 19 Existing Telecommute Programs 20 Most Telecommute Programs Are Informal* Among only those who currently or used to offer employee work commute assistance* Formal 13% Informal 87% Q 11: What type of telecommuting program does/did your company currently have or previously had? * Data represents only 8 respondents or 4% of the total sample Employers Who Offer Telecommuting To Their Employees Report An Average 59% Of Their Workforce Currently Telecommutes* Definition: Employees working at home or telecommute center, during some or all of their regular working hours at least 8 days a month * Employers who offer an informal program report an average 53% of their workforce telecommutes Employers who offer a formal program report an average 100% of their workforce telecommutes However, due to small sample size, no statistically significant difference can be concluded from these findings. 22 Savings To Employees And Employee Retention Lead The Way As Perceived Benefits To Telecommuting Programs Much more so than recruitment and productivity Reduces Employees' Commuting Costs Retention Employee Retention Reduces Office Space Promotes Employee Morale Reduces Absenteeism Productivity Increased Productivity Recruitment Attracting Better Employees Other Don't Know 0% Q 15: What do you see as the major benefits of a telecommuting program? 20% 40% 60% 80% 100% Twice As Many Of Those Who Currently Offer A Work Commute Program Find A Telecommute Program Beneficial For Increased Productivity Reduces Employees' Commuting Costs Promotes Employee Morale Reduces Office Space Employee Retention Reduces Absenteeism Increased Productivity Attracting Better Employees Other Don't Know 0% 20% Does Not Offer Work Commute Assistance Q 15: What do you see as the major benefits of a telecommuting program? 40% 60% 80% 100% Currently Offers Work Commute Assistance Key Finding # 3: Telecommuting programs work! Employees participate and employers see direct benefit in employee retention and enhanced employee productivity. Strategic Implication: Bring specific benefits – employee retention and productivity – to life in the Telework!Va marketing efforts. 25 Barriers To Telecommuting Programs 26 While There Are Many Reasons Companies Hesitate To Offer Telecommuting Programs, Their Biggest Concerns Center Around Managing And Performing Work Work Doesn't Allow For Telecommuting Cannot affect Productivity Concerns Does the work get done? Supervision Concerns Unsure of Cost/Benefit To Co. Have Never Considered It Don't Know Enough About It Concerns About Legal/Risk Mgmt. Issues Soft No Employee Interest Not Willing To Invest In Technology Used To, But Felt It Didn't Work Other Don't Know 0% 20% Q 14: Why do you not currently offer a telecommute program to your employees? 40% 60% 80% 100% Many Of These Reasons Are “Concerns” Or Issues Based On Perceptions, Not Issues Based On Facts Or Experience. Example: Employee Interest 28 Employers Feel That Only A Third Of Their Employees Are Interested In A Telecommute Program Many are uncertain of their employees’ interest in Telecommuting Employees 0% Very Interested Not At All Interested 20% 40% 60% Somewhat Interested Don't Know Q 19: What is your Employee’s current attitude about telecommute programs? 80% Not Very Interested 100% From A 2001 Resident Study, We Know That Almost 60% Of Tidewater Area Residents Were Were Interested In Telecommuting At Least On An Occasional Basis* Telecommuting On A Regular Basis Telecommuting On An Occasional Basis Don't Know 3% Don't Know 4% Yes 45% No 39% Yes 58% No 51% Q. If your company allowed it, would you be interested in working from a location other than your central workplace on a regular/occasional basis? * Source: Fitzgerald & Holliday’s 2001 Telework Study Key Finding # 4: There are many different barriers to embracing telecommuting programs. Managing/producing work are the biggest perceived roadblocks. This and other reasons are based on perception, not experience. Past negative experience with telecommuting is a non-consequential barrier. Strategic Implication: Address concerns head on with facts and unassailable evidence. Special attention should be accorded employee supervision/productivity, and appreciation of cost-benefit (ROI) of a telecommute program. 31 Interest In And Support For The Telework!Va Program 32 38% Are Interested In The Telework!Va Program 0% 20% Very Interested Not At All Interested 40% 60% Somewhat Interested Don't Know 80% 100% Not Very Interested Q 21: Now that you have an understanding of the program and its accountability requirements, how interested would you be in participating in this Telework!Va Program if it were available to you today? Realistic Level of Demand: 1 Out of 8 Applying A Discount Model To Level of Interests Suggests That The Potential Market For The Telework!Va Program in Tidewater Could Be As High As 12% Demand Discount Model A more realistic potential for market demand can be obtained by applying a standard demand forecasting discount model where market potential equals 50% of those who say they are “Very interested” plus 25% of those who say “somewhat interested” in the product concept. 12% 0% 20% 40% 60% 80% 100% Q 21: Now that you have an understanding of the program and its accountability requirements, how interested would you be in participating in this Telework!Va Program if it were available to you today? Professional Services Are Most Likely To Embrace Telework!Va While Manufacturing and Distribution Are Least Likely To Do So Professional Services Finance/Investment Sales/Customer Service Mfg/Distribution Other 0% Very Interested Not At All Interested 20% 40% Somewhat Interested Don't Know 60% 80% 100% Not Very Interested Q 21: Now that you have an understanding of the program and its accountability requirements, how interested would you be in participating in this Telework!Va Program if it were available to you today? Two Out Of Five Feel The Telework!Va Incentive Program Would Motivate Their Company To Adopt Telecommuting 0% 20% Very Likely Not At All Likely 40% 60% Somewhat Likely Don't Know 80% Not Very Likely Q 32/33: How likely would this program be to motivate your company to expand/begin to look into a telecommute program? 100% And 37%* Of Company Presidents And General Managers Would Personally Support Telework!Va Don't Know 30% Yes 37% * Management in this study skews to the highest c-class level. No 33% Q 30: If Telework!Va came to your attention, would you personally work to see that it was considered for implementation in your company? Small and Big Business Management Would Support Telework!Va Implementation In Their Company Less Than 100 Employees 100 + Employees 0% Yes 20% 40% No 60% 80% 100% Don't Know Q 30: If Telework!Va came to your attention, would you personally work to see that it was considered for implementation in your company? There Is No Set Reason That Two-Thirds Are Not Interested In Telework!Va • Telecommuting is not practical for business • Need more information to evaluate • Have no need for it • Too much time involved in implementation When Asked For Suggestions For Program Improvements, Two Thirds Say “Nothing In Particular” Nothing In Particular N/A To Business Type Allow Smaller Co. To Qualify Case Studies Need More Information Other Responses 0% 20% 40% 60% 80% 100% Q 29: Are there any changes or improvements that you would like to suggest to make Telework!Va more appealing to you or your company? Key Finding # 5: Over a third of companies are interested in Telework!Va. And 40% of senior management* feel the program would motivate them (their company) to consider telecommuting, and over a third would personally support this cause! Strategic Implication: Launch Telework!Va in Tidewater. Leverage high-level personal interest of c-class executives in the program. * Management in this study skews to the highest c-class level. 41 Telework!Va Program Accountability Requirements 42 A Majority Find All Program Accountability Requirements Reasonable Annual Employee Surveys Quarterly Reimbursement Telework 8 Days A Month Quarterly Reporting Contract Period Size of Businesses 0% Very Reasonable Not At All Reasonable 20% 40% Somewhat Reasonable Don't Know 60% 80% Not Very Reasonable Q 20: How reasonable would you say are the accountability requirements necessary for program participation? 100% For The Most Part, Even Those Uninterested In Telework!Va Say The Requirements Are Reasonable No Interest in Telework!Va Interested In Telework!Va Annual Employee Surveys Annual Employee Surveys Quarterly Reimbursement Quarterly Reimbursement Telework 8 Days A Month Telework 8 Days A Month Quarterly Reporting Quarterly Reporting Contract Period Contract Period Size of Businesses Size of Businesses 0% Very Reasonable Not At All Reasonable 20% 40% Somewhat Reasonable Don't Know 60% 80% 100% Not Very Reasonable 0% Very Reasonable Not At All Reasonable 20% 40% Somewhat Reasonable Don't Know Q 20: How reasonable would you say are the accountability requirements necessary for program participation? 60% 80% 100% Not Very Reasonable Key Finding # 6: Most find the program accountability requirements reasonable. Strategic Implication: The basic Telework!Va Program can work with its current accountability requirements. * Management in this study skews to the highest c-class level. 45 The Importance Of Telework!Va’s Financial And Program Assistance Incentives 46 Telework!Va’s Financial Incentive Is Most Important To Business Interest On a scale of 1 – 5, where ‘1’ is “Most Appealing” and ‘5’ is “Least Appealing” • Incentive Level – Up To 10 Employees or $35K 1.9 average • Program Development Assistance 2.7 average • Online Training/Educational Assistance 3.2 average • Equipment Lease 3.3 average • IT/MIS Technical Assistance 3.6 average Q 23: Looking at specific aspects of the program, which are most important to you in your interest in the Telework!Va program? Half Think A Financial Incentive Is Absolutely Necessary Don't Know 16% Yes 54% No 30% Q 24: Do you think a financial incentive is absolutely necessary to motivate companies to seriously consider implementing a telework program? Even Those Uninterested In The Program Feel A Financial Incentive Is Necessary Interested In Telework!Va Don't Know 8% No Interest in Telework!Va Don't Know 24% Yes 45% No 27% Yes 65% No 31% Q 24: Do you think a financial incentive is absolutely necessary to motivate companies to seriously consider implementing a telework program? Younger Respondents Find Financial Incentives Absolutely Necessary 44 or Younger 45 - 54 55 + 0% 20% Yes 40% No 60% 80% 100% Don't Know Q 24: Do you think a financial incentive is absolutely necessary to motivate companies to seriously consider implementing a telework program? Two Thirds Feel $35K Is Sufficient To Motivate Companies To Adopt A Telecommute Program Don't Know 28% No 8% Yes 64% Q 26: Do you think $3,500 per employee (up to $35,000) is sufficient financial incentive to motivate companies to adopt a telecommute program? Development Assistance Is Also Appreciated Resource Center w/Live Assistance Online Telework Assistance IT Consultant HR Policy Consultant 0% Absolutely Necessary Not At All Necessary 20% 40% 60% 80% 100% Nice To Have/Not Necessary Don't Know Q 28: Understanding the need for assistance in setting up a telework program, please rate your company’s need for the following types of telework assistance to ensure a successful program implementation. Key Finding # 7: It’s all about the bottom line. Strategic Implication: Don’t forget what the lead message needs to be promote Telework!Va financial incentives as the lead program feature. Include secondary program development / assistance benefits as added value. 53 Best Tidewater Employer Prospects For Telework!Va 54 The Ideal Prospect? • CEOs/Presidents • Professional Service Companies • Companies Both Big and Small The CEO or President is the Primary Decision Maker CEO/President GM HR CFO IT Manager Other 0% 20% 40% 60% Q 35: Who would be the principle person(s) to decide to go forward with a telecommute program? 80% 100% Professional Services Are Most Likely To Embrace Telework!Va While Manufacturing and Distribution Are Least Likely To Do So Professional Services Finance/Investment Sales/Customer Service Mfg/Distribution Other 0% Very Interested Not At All Interested 20% 40% Somewhat Interested Don't Know 60% 80% 100% Not Very Interested Q 21: Now that you have an understanding of the program and its accountability requirements, how interested would you be in participating in this Telework!Va Program if it were available to you today? Both Small and Big Business Management Support Telework!Va Implementation In Their Company Less Than 100 Employees 100 + Employees 0% Yes 20% 40% No 60% 80% 100% Don't Know Q 30: If Telework!Va came to your attention, would you personally work to see that it was considered for implementation in your company? Pre-exposure To Commute Assistance Programs Does Not Make A Difference In Driving Interest In Telework!Va Currently Offers Work Commute Assistance Does Not Offer Work Commute Assistance 0% Very Interested Not At All Interested 20% 40% Somewhat Interested Don't Know 60% 80% 100% Not Very Interested Q 21: Now that you have an understanding of the program and its accountability requirements, how interested would you be in participating in this Telework!Va Program if it were available to you today? Key Finding # 8: The ideal prospects for the Telework!Va Program are CEOs/Presidents of both small and big companies. However, Professional Service companies express greater interest in the program. Strategic Implication: Focus on the top. The Telework!Va decision starts at the top – the CEO/President. 60 Key Messages To Advance Telework!Va 61 Key Messages: Address The Greatest Appeals & Barriers • Those with a heightened interest in Telework!Va: – Think that these issues affect their workforce – Believe their company has a responsibility to do something about it – Feel others in their company would be interested in telecommuting/telecommuting programs – Have a keener appreciation of program benefits • The barriers that must be overcome seem to center around how to manage/supervise and maintain productivity – how telecommuting will affect getting the job done! Employers Interested in Telework!Va Are More In Tune With The Affect Of Traffic Congestion On Their Employees Chart reflects responses of ‘high’ and ‘medium’ only Affect of Transportation/Daily Commute Issues on Employees Affect of Traffic Congestion on Employee Productivity 0% 20% No Interest In Telework!Va 40% 60% 80% 100% Interested In Telework!Va Q 5: How would you describe the affect transportation/daily commute issues have on your employees? Q 6: How would you describe the affect traffic congestion has on your employees’ productivity? Three Quarters Interested In Telework!Va Feel A Responsibility To Help Solve Area Congestion & Air Quality Issues Chart reflects responses of ‘high’ and ‘medium’ only Responsibility To Help Resolve Area Congestion & Air Quality Problems 0% 20% Not Interested In Telework!Va 40% 60% 80% 100% Interested in Telework!Va Q 4: How much responsibility do you believe an employer has in helping to solve congestion and air quality problems in the area? Those Interested In Telecommute/Telework!Va Program Feel Others Would Be Interested Also Chart reflects ratings of ‘somewhat’ or ‘very interested’ only Senior Management Supervisory Team Employees 0% 20% 40% 60% 80% 100% No Interest In Telework!Va Interested in Telework!Va Does Not Offer Work Commute Assistance Currently Offers Work Commute Assistance Q 17/18/19: What is your Senior Management/Supervisory Team/Employee’s current attitude about telecommute programs? Ideal Prospects Have A Better Understanding Of Telecommuting Benefits Reduces Employees' Commuting Costs Employee Retention Promotes Employee Morale Reduces Office Space Reduces Absenteeism Attracting Better Employees Increased Productivity Other Don't Know 0% 20% No Interest In Telework!Va Q 15: What do you see as the major benefits of a telecommuting program? 40% 60% 80% Interested In Telework!Va 100% Yet, A Third Of Those Interested In The Program Have Productivity And Supervision Concerns They are also more likely to have legal and risk management concerns and to report they do not know enough about telecommuting Work Doesn't Allow For Telecommuting Productivity Concerns Supervision Concerns Unsure of Cost/Benefit To Co. No Employee Interest Concerns About Legal/Risk Mgmt. Issues Have Never Considered It Don't Know Enough About It Not Willing To Invest In Technology Used To, But Felt It Didn't Work Other Don't Know 0% No Interest in Telework!Va 20% 40% 60% 80% 100% Interested in Telework!Va Q 14: Why do you not currently offer a telecommute program to your employees? And, Half Think A Financial Incentive Is Absolutely Necessary Don't Know 16% Yes 54% No 30% Q 24: Do you think a financial incentive is absolutely necessary to motivate companies to seriously consider implementing a telework program? Key Finding # 9: In regard to key messages, financial incentives, employee retention, and corporate responsibility offer the greatest appeals. Productivity/work management issues present the greatest concerns to address. Strategic Implication: Package Telework!Va around these key benefits. Present evidence to overcome productivity/supervision issues. 69 Best Marketing Channels To Promote Telework!Va 70 Direct Mail And Personal Selling Are The Best Ways To Advance Telework!Va Email 5% Advertise to Employees 4% Some Other Means 3% B to B Advertising 6% Business Association Meeting 10% Personal Visit 21% Q 36: What is the best way to reach these people about this program? Mail 51% Key Finding # 10: Top management wants direct appeal. Strategic Implication: Focus Telework!Va outreach on high-level personal visits and follow-up letters to senior management. Start with the executives who expressed interest in the program though the research process. 72 Recap: Key Recommendations 1. 2. 3. 4. 5. Position work commute assistance programs and Telework!Va as an easy and sensible way employers can act on their sense of responsibility and directly benefit themselves. Link work commute programs/ Telework!Va directly to employer benefits. Bring specific benefits – space reduction, retention, and increased productivity – to life in the Telework!Va marketing program. Address concerns head on with facts and unassailable evidence. Special attention should be accorded employee supervision/productivity, and appreciation of cost-benefit (ROI) of a telecommute program. Launch Telework!Va in Tidewater. Leverage high-level personal interest of c-class executives in the program. Recap: Key Recommendations 6. The basic Telework!Va Program can work with its current accountability requirements. 7. Promote Telework!Va financial incentives as the lead program feature. Include secondary program development/ assistance benefits as added value. 8. Focus on the CEO/President and Professional Services companies. 9. Package Telework!Va around these key benefits. Present evidence to overcome productivity/supervision issues. 10. Focus Telework!Va outreach on high-level personal visits and follow-up letters to senior management. Thank You 75