Telecommuting; Overview and Facts

Telecommuting; Overview and Facts

Definition:
Telecommuting or Telework refers to workers doing their jobs from home for part of each week and communicating with their office by computer. It is growing in many countries, and is expected to be common for many workers in the coming decades.
A person who telecommutes is known as a "telecommuter". A frequently repeated motto is that "work is something you do, not something you travel to".
Telecommuting is a way to work from home via a computer and telephone connection. This is becoming a popular way for many to earn a successful living. Saving on gas, clothing and day care are just a few of the perks of being a telecommuter. The greatest benefit is being able to set your own schedule. Flexibility and independence are other benefits of this type of career. Most telecommuters are independent contractors while some are hired in-house and complete projects at home part-time.
In other words Teleworking is a work performed from a distance, as opposed to work performed directly on site. Communication is accomplished over a network e.g. the internet or by phone, fax, modem, and teleconferencing. At the beginning of the 21st century, teleworking is an area of work rapidly increasing in size and importance. A frequently repeated motto is that "work is something you do, not something you travel to". Communication is accomplished by phone, fax, modem, and teleconferencing.

Why Teleworking?
The driving factor behind teleworking has been the need to cut costs while the enabling factor has been the global electronic internet network that allows digital data to be accessed and shipped instantly, from and to almost anywhere in the world.
Teleworking has enabled offshore outsourcing, the practice of hiring an external organization to perform some or all business functions in a country with lower wages, other than the one where the product or service will be sold or consumed. Possibilities for increased service and internationalization are offered, since teleworkers in different time zones can ensure that a company is virtually open for business around the clock.
Teleworking also allows for avoidance of travel that saves on time, traffic jams, office space, and parking space, resulting in further cost savings for the employer as well as enhancement of productivity. Because of less interruptions of an office environment both teleworkers and their managers have consistently reported significant efficiency gains.
Teams representing the best skills and experience for a particular project can now be created, regardless of geography and time zones and with a minimal need for extra travel.
Client services can also be extended beyond the working day or the working week without the costs of overtime payments or the need for staff to work (and travel) at unsocial hours.
How is teleworking managed?
A successful telecommuting program requires a management style which is based on results and not on close scrutiny of individual employees. This is referred to as 'managing by objective' as opposed to 'managing by observation'. The general criteria to consider for a job to be telework-able are:
• The job does not require direct client interaction;
• There is a significant wage difference between the original and offshore countries;
• The job can be transferred over the internet or by phone, fax, modem, and teleconferencing.
Teleworking is an effective tool for organizations looking for a competitive edge in today’s tight labor market. By enhancing an employer’s ability to recruit and retain skilled workers, improving employee satisfaction and productivity, and cutting overhead costs, teleworking can help an organization prosper.








Tips for effectively managing Teleworkers:
Estimates suggest that over fifty million U.S. workers (about 40% of the working population) could work from home at least part of the time, yet in 2008, only 2.5 million employees (not including the self-employed) considered their home their primary place of business.
Occasional telecommuters are those who work remotely (though not necessarily at home) —totaled 17.2 million in 2008.
Very few companies employ large numbers of home-based full-time staff. The call center industry is one notable exception to this; several U.S.-based call centers employ thousands of home-based workers. For most employees, the option to work from home is granted as an employee benefit; most do so only part of the time.
In 2009 the Office of Personnel Management reported that approximately 102,000 Federal employee’s telework.
In the next three years, public and private sector IT decision makers expect telework to increase by 65% and 33%, respectively.
Given those formidable numbers, how can IT managers stay on top of teleworker productivity and company profitability?
- Challenge 1: Managing remote workers
Managing remote technology is tricky, but managing remote workers may be even trickier. Telework tends to amplify pre-existing organizational weaknesses, said Michael Dziak, author of Telecommuting Success and president of the consulting firm InteleWorks. So if the organization already has a weak management policy, the policy should be updated before teleworking begins. “Telework forces managers to sharpen their basic skills, including measuring performance by results, effective interpersonal communications, mastery of electronic tools, leadership and team building,”
Some tips for IT managers on how to create an effective telework environment:

a. Identify tasks suitable for remote work: It might be easier to make a list of positions that are not suitable for telework than a list of those that are suitable. The key to successful telework is identifying those tasks that can be performed remotely.

b. Establish the ground rules: The only way telework relationships will be successful is if all participants use the same rulebook. Your company’s Telework Policy and Procedures should be made available to teleworkers and managers.

c. Be prepared to enforce the policy: Each time a question comes up about a telework policy, the manager or teleworker should be able to find a guideline in the policy or procedures manual or be able to make a decision in the spirit of the rules. When the policy inadequately covers an issue, the company should take it as an opportunity to update the policy.

d. Practice effective meeting management: Meetings are a necessary part of any organizational process. In a telework environment, situations in which coworkers gather and interact become even more important to the effectiveness and cohesiveness of the team. Good meetings don’t just happen—they require preparation, planning, execution, control, and effective follow-up. Smart managers establish a clear set of goals prior to a meeting, increasing the chances that the effort will be successful.

e. Provide effective support: A teleworker with broken technology tools might as well be signed out. A manager must ensure that the teleworker is prepared with solutions to potential obstacles, contingency options for failed links and equipment, troubleshooting checklists, and a list of contacts for support.

f. Manage all direct reports by results: “Good managers rarely need major adjustments to their performance evaluation process to accommodate teleworkers,” Dziak said. “If the manager manages by evaluating work output, it actually becomes easier to keep track of teleworkers’ work output and perform evaluations.”

Smart managers break employee work into objectives, projects, tasks, and action items. Assigning, tracking, evaluating, and rewarding work output using these specifics dramatically improves a manager’s knowledge of work activities, consistency in establishing expectations, and ability to objectively determine whether those expectations are being met.


- Challenge 2: Managing the technology:

In addition to finding effective ways to manage teleworkers, IT managers must overcome a host of technical challenges to implement successful remote operations. According to Himes, those challenges include bandwidth-deficient network connections, frequently changing desktop applications, user equipment physically distant from maintenance experts, and limited physical observation.

“IT managers who are responsible for enabling remote work programs need to put solutions in place to facilitate the unique management style and support requirements remote work generates,” said Himes.

Connectivity via Web browser or terminal emulation solutions dramatically reduces remote technical support requirements. In addition, the systems are much more likely to be compatible with multiple operating systems, according to Himes. Companies like Intranet provide applications that use intranets/extranets to facilitate the exchange of information to remote workers and make it easier for them to collaborate across business units and geographies. According to Himes, “This type of software connects the remote workforce to the enterprise by making documents easy to search for and retrieve while structuring workflow, versioning, syndication, and approval rules.


“Feedback from the workers as to the performance of our intranet and the role it plays in their productivity is of primary importance to me as an IT manager. Decisions are based on this feedback,” West said.

With the number of people who telework increasing every day, managers must develop strategies for overseeing the relationships. By implementing the technical and strategic suggestions we’ve described here, you can stay ahead of the game.

Some of telecommuting jobs are:
Telecommuting job could be any job that has the possibility to be done from far, or electronically, that means any job involves internet, communications, or other managerial/ office responsibilities. However the development of internet and communication technology is making things more possible, and what could be inaccessible today, will be available sometimes in the future.
However the most knowable telecommuting jobs are:
a. Writers
Writers are a growing trend in the telecommuting industry. Many work independently for several different publishing houses simultaneously, completing multiple projects. Complete with journalism and English degrees, the writer has a broad platform on which to write. Technical writing, poetry, composition, essay writing, copy writing and ghost writing are popular telecommuting jobs. Writers can typically set their own hours and price range but need to pay close attention to deadlines and accuracy. Writing isn't for everyone and the market can be quite competitive. Finding a topic or area of personal expertise is the best way to become the most profitable in writing. Many writers who telecommute make between $20 and $200 per hour.

b. Virtual Call Center Representatives
One of the first types of businesses to launch into telecommuting was the home-based call center. Businesses realized they could utilize a virtual call center at a fraction of the cost of having reps in house. This boom became popular in the late 1990s. There are several companies that hire workers to work at home using their computers and their telephones. Most of these jobs involve sales or some kind of up-sell of a product. Many workers log into their computers at designated times and have their headsets ready to talk to customers. People call after seeing a product or service they would like to order on a television infomercial or shopping channel. The representative takes down pertinent information as well as the caller's credit card information and completes the sale. Most workers have to endure extensive background checks before being hired to be an at-home worker. Some of the most popular virtual call center companies are Alpine Access, Arise, GE, LiveOps and West-At-Home. Generally a representative can make around $400 per week working part-time hours.

c. Real Estate Agents
Real estate agents can have a profitable career telecommuting and working from home. Many are independent contractors and work for themselves. They can be hooked into the MLS service so they can connect with other Realtors and find available properties for sale. Many advertise their listings in newspapers and through TV ads so they can increase sales and find new clients. Agents will telecommute from their vehicles as well---being on the road is important to the success of many agents. From home, agents will set up appointments, schedule open houses and make cold call contacts. Most agents can make between $40,000 and $150,000 per year depending on their location and the market

d. Transcriptionists and Data Entry Clerks
Medical transcriptionists and data entry clerks are gaining popularity in the work at home and telecommute circuit. Most large medical facilities and corporations are outsourcing projects rather than paying someone an hourly wage. The result is more efficient and more productive work habits. At home, there are fewer interruptions and the company doesn't have to pay insurance or medical benefits; that alone saves business up to $10,000 or more per year. Transcriptionists are usually paid per line and can make up to $25 per hour in some cases. A strong medical terminology background, fast typing skills and the ability to work independently are all that is needed. Mtjobs.com hires transcriptionists from a variety of backgrounds. For medical data entry clerks, only a computer and spreadsheet software are required. Raw data is transferred from a disk to a concise spreadsheet for easy reading and access. Companies that hire data entry clerks include Axiondata and Getafreelancer.com.



e. EBay Sellers
One way to telecommute and make a decent living is to open an eBay store. With eBay there is minimal investment and you can start by selling items from around the house. Some people specialize in selling craft items, antiques or books. The items are listed and sold to maximize profit. Successful eBay sellers invest little money and time and make between $100 and $2,000 per day, depending on sales. All that is really required is a computer, items to sell and shipping supplies.


Effects of Telecommuting on society:
How do you think society will be affected by the growth of telecommuting?
Telecommuting will have major effects in the worlds of work and family life. However, its biggest effect will be in the area of individual freedom, responsibility, and time management.
Work and workplaces will alter dramatically. Offices may become smaller, as fewer desks are needed. There will be greater need for high-bandwidth connections to link the office and the home, and even homes to other homes, as other employees and supervisors also begin working at home. Hours spent commuting, traffic jams, and fights for parking should diminish, as workers make fewer journeys or work staggered hours.
Family life will also change. Workers, both husbands and wives, can arrange their work around family commitments such as taking children to school, cooking, leisure activities, etc. However, households will also have to set aside areas for work - particularly if both spouses are telecommuting.
However, although the ideas of more time at home and less time traveling are attractive, there are some drawbacks to telecommuting. People may feel unable to escape their work, and may even work longer or more unsocial hours. The quality of work may suffer because of the reduced face-to-face interaction with other employees. There may be delays if other workers are not immediately available. Telecommuters may feel isolated or unmotivated, or insecure about decisions. A major change will be in the way people think about work as a place or an institution. Instead, they will focus on the task or product. Workers may feel less loyal to a company and more inclined to change jobs or work part-time or on contract.


Role and importance of internet in telecommuting:
There is no doubt that the base and core of telecommuting technology is the internet that communicates staffs, and machines from far, therefore the status of internet connection, weak or strong, slow or fast does really effect telecommuting.
Not to mention that the internet technology itself vary from one country to another, where advanced and developed countries are categorized by high internet technology installation and usage. For example advanced countries like USA, Canada, Japan, and Sweden …etc have began using the technology of Fiber Optic internet technology that can handle an ultimately high speed connection (in Gega Bytes) compared to DSL.
(Wire commonly made out of glass or plastic that carries light signals. When compared to earlier traditional cables, optical fiber cabling has an increased speed, capacity and clarity of signal.)
Hence the technology of internet or the internet as a service provided does really affect the usage of teleworking, and the knowledge about teleworking.
So that is obvious to see that advanced (or developed) countries and where the usage of internet technology is high, and where the availability of the service is pretty much fair.
And in contrast in developing and poor countries the technology of internet is still rare and usage is very low, not to mention that cost is considered high in regards to revenues. Therefore the strategies and setup of teleworking in advanced and technologyzed countries are much easier and accessible than poor countries.

So what do you need to setup work from home, or to be a teleworker?
1. Internet connection; (of course the higher speed you have the better connection you get).
2. A good running PC or Laptop, and of course the better specifications you have, the better performance you get. For example;
a. High processor speed; 2 GHz or more is preferable
b. High RAM storage; 1Gb or more is preferable
c. High Hard drive storage, and this of course depends on the programs you have and you will install to your PC, but the highest capacity is the better
3. Software and programs you might need to access sites and URL. Usually the company will provide you with such requirements
4. Other equipments and devices you might need to perform your job, such as: Fax, Telephone, Router, Papers …etc
Potential advantages and disadvantages for Teleworkers:
1. Advantages:
- Reduces stress, while improving morale, work satisfaction and motivation
- Fewer interruptions allows greater focus and improved personal productivity
- Improved job satisfaction
- Save money (food, clothing, dry cleaning, bus, parking, fuel, highway tolls, insurance etc.) For example, commuting to work can easily cost $8,468.40 or 47 cents per kilometer per year (Canadian Automobile Association 2002 national average)
- Reduces commuting time (commuting 1 hour each day equates to 6 full work-weeks a year)
- Reduces need to relocate
- Reduced personal leave
- Gives job access to those in geographically remote areas
- Recognizes growing importance of family, increase single parent/dual career households
- Reduces traffic accidents
- Meets demands for new lifestyles and flexible work environments
- Helps balance work and family or life
- Increases physical comfort: custom-fit heat, lighting, and ergonomics
- Makes "getting to work" easy for disabled persons
- Can improve supervisor / employee communications
- Reduces exposure to "office politics"
- Fewer daytime home break-ins

2. Challenges:
- Some colleagues can be jealous, especially if they are refused the chance to telework
- Reduced social interaction can lead to social & professional isolation
- Organizational culture
- Fewer career and promotional opportunities; reduced office influence
- Monitoring performance can be tricky
- Potential for longer hours
- Reduced level of IT support
- Diminished access to resources found only at workplace
- Work / family or life balance may be affected if teleworker becomes a work addict
- Potential for distractions
- Desk potato or "fridge factor" syndrome


Skills needed for Teleworking:

A growing number of employees who work for public and private corporations, small businesses and government agencies have work arrangements that allow them to work from home, also known as teleworking or telecommuting. Entrepreneurs, freelancers and self-employed professionals also complete assignments remotely. Corporate human resource departments generally establish rules and guidelines that help managers and employees determine whether a telework situation is feasible in certain situations. Whether you are self-employed or work for another professional, being aware of the skills needed to telework can help you navigate the world of remote employment.

Below some skills required to be able to manage teleworking:
a. Organizational Skills
Organizational skills are required in order to start and complete assignments on time when you work from home. This might involve creating paper and electronic files to store documents related to projects that you are working on. Supervisors and clients might ask you to send them a copy of a document or a status update on a project at a moment's notice. You need to be organized and able to retrieve the data as soon as requested.

b. Time Management
Unlike a typical workplace setting, a home office has no one who will come by and check to see that you are focusing on a project or assignment. Plan on starting the day early enough so that you can complete assignments on time. Set aside a designated work space in the home that is for office work only. This will minimize distractions and help to put you in the mindset to work. Avoid gazing out the window, checking emails or surfing the Internet. You may find it helpful to create a spreadsheet that lists the start and end times for each assignment that you complete so you can effectively track your time. Use a day planner or calendar to schedule specific times to hold regular meetings with clients and supervisors. Having a reminder feature on your cell phone or office software is especially helpful.


c. Computer Skills
Computer skills, including knowing how to use software packages, such as Microsoft Office, MacWindows, Excel and PowerPoint, are invaluable for telework. Navigating the Internet and using email effectively are two more competencies that are crucial for telecommuting. Moreover, although you might have a technologist that you can contact in the event of a computer challenge, you will be expected to operate, and sometimes troubleshoot, computer systems on your own to complete projects and assignments in a timely manner.

Expectation and future of teleworking:
We would rather discuss the implications of this growth, because it is very explicit that the growth WILL continue. Here is what that means for all of us:
1. Nobody Can Stop It:
Telework is not a temporary fad. We will never return to the time when almost everybody works in the office all the time.

2. The World Will Adapt to Telework - Not the Reverse:
When women started to be employed in professional-level jobs in the US in large numbers, the women had to do all the changing and adjusting to a man's world.
The same things happened with teleworkers. In the beginning, and even today, teleworkers had to be very careful about their work schedule, to be sure they were able to be in the office to attend meetings. Today, most of those meetings are done by audio or video conference calls. These trends will continue - including some of the hidden problems. Even though women are much more accepted today in the business world in the US and elsewhere. Slowly but surely, all of this will change.
3. The Telecommunications Industry Will Go Crazy:
Most of teleworkers in the US can get some kind of broadband connection to their homes. This is true, but it is the result of more than ten years of slow progress. In the US as in Japan and most other countries, the telephone network was designed for business calls to occur in offices, and for personal calls to occur in homes. It has been virtually impossible for the carriers to change their networks quickly enough to satisfy the demand for high-speed access.
Teleworkers want bandwidth like a child wants candy: no matter how much they have, they always want more.
4. Managers Will Adapt or Become Useless:

Managers of 50 ages and older continue to have a difficult time adjusting to telework - although I have seen many managers in their 50's and 60's doing very well with teleworkers.
Managers at age 50 and older, as well as many in their 40's, have been trained and expected to be very close supervisors - to watch what their people are doing almost every minute.
5. Fewer Workers - More Business Owners:

Japan is just like the rest of the world: every developed country is in the middle of explosive growth in small businesses and entrepreneurs.
Telework most often refers to corporate employees working at home or elsewhere away from the office - but that is only one form of telework.
6. Very Little Will Change in Transportation Patterns:

As you know, one of the benefits of telework that has always been discussed is the ability to reduce the daily commuting problems and the air pollution that come with them. We know that teleworkers drive their cars less - that is for certain. But we also know that the overall pattern of traffic congestion is so bad in almost every city, that it would take an enormous amount of telework to make a difference.
I still believe that telework definitely can help remove some cars from the road and some pollution from air, but I am not convinced that doing so will have much of an effect overall.





Telecommuting Statistics and Facts:
Telecommuting could save employees, companies, and communities over $600 Billion a year.
• Based on the latest American Community Survey data, just over 2% of the U.S. employee workforce (2.8 million people, not including the self employed or unpaid volunteers) considers home their primary place of work.
• Growth of Multiple Days per Week Employees telecommuting (not including self-employed):
2007 to 2008 = 14.1% (2.8 million or 2.18% of U.S. employee population)
2006 to 2007 = 7.8% (2.5 million or 1.99% of U.S. employee population)
2005 to 2006 = 26.2% (2.3 million or 1.86% of U.S. employee population)
• The number of Americans who worked from home or remotely at least one day per month for their employer (“employee telecommuters”) increased from approximately 12.4 million in 2006 to 17.2 million in 2008. A 39% 2 year increase and 74% increase since 2005. (WorldatWork Telework Trendlines 2009)
• 38% of people who did not currently telecommute said they had job-related tasks that they thought they could perform from home.
• When asked what portion of their work they could do from home, 29% said they could do less than 20%, 27% said 20-40%, 11% said 40-60%, 9% said 60-80%, and 24% said 80% or more.
• When asked about their interest in working from home, only 21% said they were not at all interested. (WorldatWork Telework Trendlines 2009)
• 40% of U.S. employees hold jobs that that could be done at home (50 million). (Matthews & Williams 2005—Telework Adoption and Energy Use in Buildings and Transport Sectors in the United States and Japan)
• About half of all business are home-based (16 million)
(United States Small Business Administration, Office of Advocacy, The Small Business Economy 2007—A Report To the President) – though many of them do not work both from and at home (plumbers, for example)
• In response to high gas prices, almost one in four employers are planning to offer a telecommuting option for their employees within the next six months (8/08) and 42% already have. (Mercer’s 2008 Gas Price Impact SnapShot™ Survey)
• More frequent telecommuting has been the second highest way employees have dealt with rising fuel prices. It was cited by 33% of workers (46% had increased carpooling, 33% were driving more fuel efficient cars, and 30% are looking for job closer to home).
• 25% of employers plan to offer telecommuting as an option for retiring Boomers.
• 29% have begun offering telecommuting as a way to improve staff retention rates in the last 12 months. (2008 Robert Half International Survey)
• The vast majority of workers in the United States commute to work, with 70 percent reporting they commute all the time to work. Among the other 30 percent: 9 percent telecommute part time and travel to their jobs the rest of the time; half of these individuals telecommute just one or two days a week; 2 percent telecommute full time; 8 percent have home-based businesses, and therefore do not need to commute; 12 percent have jobs that do not involve a traditional commute [likely road warriors / mobile workers].