JOINT REPORT OF THE DIRECTOR OF PERSONNEL AND PERFORMANCE AND
DIRECTOR OF CORPORATE SERVICES
TO DIRECTORS TEAM
Homeworking – Options and Considerations
1.
INTRODUCTION
1.1
The potential for making improvements through new ways of working has been under
consideration for some time. A cross-directorate working group has met to progress the
issue, both organisationally and in relation to specific services,
1.2
The working group comprised of senior representatives from all Directorates, coordinated by Personnel and Performance.
1.3
This report identifies the key discussion points for further consideration.
2.
KEY DRIVERS
2.1
The key drivers and benefits for considering this initiative are identified as follows:
Modernising service delivery. The drive towards e-government and the
provision of services by technology-based means provides possibilities for new
and innovative options that achieve business benefit.

Accommodation strategy. Linking homeworking to an accommodation strategy
provides an opportunity to reduce accommodation needs and make associated cost
savings.

Best value. The best value process requires us to look for continuous
improvement in the way services are provided.

Progressing the flexible working agenda. Homeworking is a potential area to
support the wider work-life balance agenda.

Recruitment and retention. The development of innovative working practices
could enable the City Council to compete in terms of recruitment and retention,
particularly in occupations where this is an issue.
The last two points are currently under review at a national level as part of the ‘Pay Commission
for Local Government Services’ Staff’.
2.2
In addition to those areas listed above, there is evidence that there are other benefits to be
derived from homeworking such as increased productivity, environmental benefits and
business continuity in the event of a disaster.
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3.
DEFINING HOMEWORKING
3.1
The working group considered three forms of homeworking. These are as follows:A. Home Based where the employee works almost entirely at home for all of their
working hours, doing the same kind of work as they would in an office. This
would include occasionally returning to the office for training etc. This is most
suited to data entry or handling customer service enquiries.
B. Location-independent working for those staff who spend a great deal of their
time out and about and can work from several places, not necessarily the same
base. They will need drop-in/hot-desking facilities to be provided.
C. Flexible working where staff retain a main base but work from home on an adhoc basis, usually to complete project or policy work.
3.2
Clearly, in terms of realising most improvements, particularly from a cost point of view,
it is the first two forms of homeworking which have greatest potential.
4.
COST ISSUES
4.1
Key to establishing a business case for homeworking is calculating the associated costs
and potential savings. The cost of homeworking will need to be compared to the
traditional costs of working from an office. However it is important to examine these at a
strategic level to understand the full picture. It is important to look at savings to be
accrued from reducing the number of employees needing an office base, thus allowing for
significant reduction in office costs. It is also important to take account of costs over time
(set-up and maintenance).
4.2
The issue of telephone call charges (particularly for IT connections) has traditionally
been a stumbling block to homeworking, with costs to dial into the Council being £1.15£1.60 per hour, depending on the network service provider. There may be a potential
solution to this problem by using BT’s ADSL or ‘leased line’ technology, which involves
the provision of broad band services for an unlimited period at a fixed monthly/annual
rate. BT’s leased line technology is being used by 3 of the 4 “Salford Direct” staff who
now work from home.
Currently there are limitations to where broad band services can be provided,
however a broad band stakeholder group has been established which includes
local authorities as well as the private sector to develop a detailed strategy to meet
its broadband goals. The government have also set aside £30m for regional
development agencies and devolved administrations to extend broadband
networks in their areas. To facilitate easy access to broadband services, the
government will also pilot teleworking facilities in UK Online centres.
The Office for Government Commerce (OGC) and GM have also begun studies
into procuring broad band more effectively across the public sector.
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The OGC study aims to :




Identify the public sector’s actual requirements for broadband services in terms of
volume, quality, location and associated services;
Determine the scope of services to be procured;
Determine the preferred procurement route;
Recommend arrangements for ongoing management.
This study is due to be completed in the near future.
Many potential homeworkers require only occasional access to the City Council’s IT
systems and therefore are more suitable from a financial point of view than those
requiring more or less continuous access.
5.
POTENTIAL FOR HOMEWORKING WITHIN THE CITY COUNCIL
Working Predominantly from Home (option A above)
5.1
The working group acknowledged that this form of working offered real accommodation
savings, but that these must be measured against the set-up costs.
The Call Centre staff and Revenues and Benefits within Corporate Services were already
moving forward with this option. There was little immediate scope for additional large
numbers of staff, from other Directorates, to follow this pattern.
5.2
Operating costs will vary widely depending on the function and practices of each
homeworker. These costs will include equipment procurement and maintenance,
telephone line rental and call charges.
Location-independent (option B above)
5.3
The group considered that the potential for location-independent or “hot desking” was
much greater. Most Directorates could identify groups of staff who tended to work
throughout the City, using their current office accommodation as a base for contact,
admin support, paperwork etc. Any of the Council’s buildings, with the appropriate
working arrangements and technology, could provide sufficient support for these staff,
and may be more convenient. Future developments such as LIFT and one-stop-shops will
further facilitate this process.
5.4
It is important to consider this form of working as part of a wider IT strategy and as part
of the accommodation strategy in order to realise savings. There is also a need for a
corporate approach to be taken to the ownership of council buildings to encourage the use
of facilities being available to all employees, irrespective of Directorate.
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5.5
City wide drop-in facilities would have to overcome a number of IT difficulties. At
present, officers only have access to the data communications network from a single or
small number of localised workstations. This problem could be overcome by distributing
computer disc space with a shared user facility throughout the city. A report on the costs
to implement this is to be prepared by the IT, DeskTop Services unit in the near future.
5.6
This does not necessarily present a problem for hot desking on an individual team basis
as a specific area can be configured to allow access to a number of users e.g. the
Customer Contact Centre. Hot desking on an individual team basis is more achievable in
the short term and could achieve savings by reducing the total amount of office space any
one team needs to have.
Flexible working (option C above)
5.7
The group concluded that this form of flexible working offered no real benefits in terms
of direct savings, although it was acknowledged that there could be productivity benefits.
It was considered that this form of working should continue where appropriate at
management discretion.
5.9
It was acknowledged that existing arrangements were essentially informal and that any
formalisation would potentially bring forward other issues to be considered, including the
provision of ICT equipment and reconciliation of working hours.
6.
CONCLUSIONS AND RECOMMENDATIONS
6.1
Having considered the views of Directorates in this process, the overall conclusions are
as follows: a) Option A: The model of homeworking (predominantly from home) should continue
to be encouraged wherever feasible and particularly within Corporate Services, but
recognise that at present there is less scope for any wider use of this model within
other Directorates.
b) Option B: The greater potential for hot desking should be actively promoted within
Directorates on a localised basis as part of a strategic policy approach to dealing with
the accommodation pressures. and,
c) Location independent working using drop-in facilities across the City offers real
potential in terms of greater efficiency and accommodation savings. Further
evaluation of the citywide potential for this approach should be undertaken, again as
part of the wider accommodation review.
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Appendix 1: CORPORATE SERVICES PILOT
As a result of centralisation of benefits, 60 staff were relocated to Phase III. The layout of the
office and the constraints of the ICT cabling, mean that the amount of office space and the
configuration of desks does not provide an ideal working environment.
This was one of the factors that led to the service looking the possibility of staff working from
home, which has resulted in the introduction of the homeworking pilot within Salford Direct in May
2002. Although still in its infancy, early results appear promising both for the participants and the
Authority itself. Indeed the 4 employees have to date reported positively :
increases in productivity (up to 15%);
reduced sickness absence (the member of staff was able to continue working from home, instead of
taking time off sick);
reduced stress levels (travelling time reduced);
better work/life balance (able to attend school functions during the day and work at other times)
whilst they themselves have enjoyed real benefits personally in maintaining their duties from their
home environment.
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