URBAN PARTNERSHIPURBAN PARTNERSHIPAGREEMENTAGREEMENT

TELECOMMUTING TELECOMMUTING

Adeel LariAdeel LariState Local and Policy Program, HHHState Local and Policy Program, HHH

University of MinnesotaUniversity of Minnesota

July 10, 2008July 10, 2008

WHY TELECOMMUTE?WHY TELECOMMUTE?

Telecommuting is the most cost effective andTelecommuting is the most cost effective and

fastest method to reduce congestionfastest method to reduce congestion

Only 2.9% of the Minneapolis workforce telecommutesOnly 2.9% of the Minneapolis workforce telecommutes

UPA UPA TELECOMMUTINGTELECOMMUTING

PROGRAM PROGRAM OBJECTIVESOBJECTIVES

Federal TelecommutingFederal TelecommutingWhat Can be done ?What Can be done ?

Securing agreements from major Securing agreements from major area employers to establish or area employers to establish or expand telecommuting and flex expand telecommuting and flex scheduling programscheduling program

UPA RequirementUPA Requirement Increase the use of Result Only Work Increase the use of Result Only Work

Environments (Environments (R.O.W.E.R.O.W.E.) within the ) within the regionregion

Reduce congestionReduce congestion

Increase telecommutingIncrease telecommuting

UPA Telecommute Program UPA Telecommute Program ObjectivesObjectives

TELECOMMUTINTELECOMMUTING G

OPTIONSOPTIONS

Traditional TelecommutingTraditional Telecommuting

Allows employees to work Allows employees to work from home via the from home via the internetinternet

Flexible work Flexible work arrangements build trustarrangements build trust

Focus on performance Focus on performance and hours—employer and hours—employer policies applypolicies apply

ROWE—Results Only Work ROWE—Results Only Work EnvironmentEnvironment

Deep impact on the Deep impact on the business culture, business culture, operation and operation and mindset of the mindset of the management and management and personnelpersonnel

No schedules. People No schedules. People make choices about make choices about where and when work where and when work is done.is done.

Free to work where ever you want, when ever you want, as long as the work gets done.

ROWE AttributesROWE Attributes The focus is on results and The focus is on results and results onlyresults only..

Establishes the ultimate state in work Establishes the ultimate state in work flexibilityflexibility

Allows every employee the freedom to do Allows every employee the freedom to do their best work the way they work besttheir best work the way they work best

ROWE ProvidesROWE Provides Equal opportunity Equal opportunity

for all to participate for all to participate regardless of job regardless of job duty or job levelduty or job level

Incentive to work Incentive to work where/when it’s where/when it’s best for business best for business and personal and personal pursuitspursuits

Opportunity for Opportunity for SUSTAINABLE SUSTAINABLE changechange

ROWE work ROWE work environmentenvironment

No permission neededNo permission needed

Employee managedEmployee managed

Based on the workBased on the work

Requires Requires accountabilityaccountability

Focus on “the work”Focus on “the work”

Flexible workFlexible work arrangementsarrangements

Permission requiredPermission required

Management controlledManagement controlled

Based on hours and workBased on hours and work

Requires Requires policies/guidelinespolicies/guidelines

Focus on hours and workFocus on hours and work

TELECOMMUTINTELECOMMUTING G

BENEFITSBENEFITS

Universal Telecommuting Universal Telecommuting BenefitsBenefits

Reduce CongestionReduce Congestion

Energy ConservationEnergy Conservation

Environment PreservationEnvironment Preservation

Enhanced SafetyEnhanced Safety

Improved HealthImproved Health

Corporate Telecommuting Corporate Telecommuting BenefitsBenefits

Cost SavingsCost Savings Premise costsPremise costs Office overhead costsOffice overhead costs Labor Labor

Increased Productivity & MotivationIncreased Productivity & Motivation A flexible and independent work environment leads to A flexible and independent work environment leads to

increased productivity as well as elevated motivation increased productivity as well as elevated motivation and moraleand morale

Less absenteeismLess absenteeism

Employers send a positive signal of trust and Employers send a positive signal of trust and confidence via a telecommute program confidence via a telecommute program

Corporate Telecommuting Corporate Telecommuting BenefitsBenefits

Employee and Skill RetentionEmployee and Skill Retention Retain the “sandwich” segment—Boomers tasked Retain the “sandwich” segment—Boomers tasked

with caring for both children and aging parentswith caring for both children and aging parents ““Career Break” Retain employees part-timeCareer Break” Retain employees part-time Employees are less motivated to leaveEmployees are less motivated to leave Training costs reduced with higher retention ratesTraining costs reduced with higher retention rates

Flexible StaffingFlexible Staffing Hiring talent not limited to geographic areaHiring talent not limited to geographic area

ROWE ResultsROWE Results

Culture RX reports an average of Culture RX reports an average of 35% productivity increase at Best 35% productivity increase at Best BuyBuy

Significant retention increaseSignificant retention increase

VoluntaryTurnover Rate

Involuntary TurnoverRate

INDIVIDUAL INDIVIDUAL BENEFITS BENEFITS

Individual Telecommute BenefitsIndividual Telecommute Benefits Savings! Today gas prices are top-of-Savings! Today gas prices are top-of-

mind mind Weekly commute costs are sky rocketingWeekly commute costs are sky rocketing

Time savings is a high priority for busy Time savings is a high priority for busy familiesfamilies

Individual Telecommute BenefitsIndividual Telecommute Benefits

Life Quality & BalanceLife Quality & Balance A better balance between work and A better balance between work and

familyfamily Reduced stress related to rush hour Reduced stress related to rush hour

commutecommute More time for health and wellness More time for health and wellness

activities activities

Better Health + Less Stress = More Work Focus

TELECOMMUTINTELECOMMUTING BARRIERSG BARRIERS

Telecommuting BarriersTelecommuting Barriers

Technology is no longer a Technology is no longer a telecommuting barrier—the telecommuting barrier—the challenge for corporations is a challenge for corporations is a cultural barrier cultural barrier

Telecommuting BarriersTelecommuting Barriers Management by Observation vs. Management by Observation vs.

ObjectivesObjectives Corporations need to shift measures on resultsCorporations need to shift measures on results Commitment to better monitor & measure Commitment to better monitor & measure

resultsresults

Telecommute programs force reliable Telecommute programs force reliable resultresults s measurementmeasurement

Telecommuting BarriersTelecommuting Barriers

Perception telecommuters are loafersPerception telecommuters are loafers

Some employees perceive telecommuting Some employees perceive telecommuting a hindrance to career advancementa hindrance to career advancement

Negative perception mainly created by Negative perception mainly created by employersemployers An embraced telecommute program alleviates An embraced telecommute program alleviates

employee apprehension and resistanceemployee apprehension and resistance

Telecommuting BarriersTelecommuting Barriers Telecommuting is not for everyoneTelecommuting is not for everyone

Those with poor personal motivationThose with poor personal motivation Young employees just entering the workforceYoung employees just entering the workforce Going to workGoing to work is an important aspect of life— is an important aspect of life—

social & skills valuesocial & skills value Not all work task are best Not all work task are best

performed or appropriate for a performed or appropriate for a

telecommute setting.telecommute setting. Some types of work value team Some types of work value team

synergy and the synergy and the rub off rub off effecteffect

TELECOMMUTINGTELECOMMUTING

FUTURE FUTURE

Telecommuting FutureTelecommuting Future

Telecommute programs are expected to Telecommute programs are expected to become a viable planning element to:become a viable planning element to: Reduce congestion and pollutionReduce congestion and pollution Preserve and protect the environmentPreserve and protect the environment

Our weak economy may help drive support Our weak economy may help drive support for increased telecommuting programsfor increased telecommuting programs

UPA STEERINGCOMMITTEE

TELECOMMUTESTEERING

COMMITTEE

MARKETINGEDUCATION

MANAGEMENT

Work plan for UPAWork plan for UPA

ITCONSULTING

R.O.W.E.CULTURE RX

TRADITIONALTELECOMMU

TE

MEASUREMENT&

EVALUATION

U of M Research – NIH U of M Research – NIH FundedFunded

2 year study to understand how a ROWE affects 2 year study to understand how a ROWE affects health/well-being. Research findings support a health/well-being. Research findings support a ROWE as having the long-term potential to change ROWE as having the long-term potential to change work behavior - and in work behavior - and in turn affect commuting turn affect commuting behaviorbehavior Employees in a ROWE are ‘less apt’ to commute Employees in a ROWE are ‘less apt’ to commute

vs. the control group, instead choosing to work vs. the control group, instead choosing to work other places besides the ‘office’ other places besides the ‘office’

Employees in a ROWE report having less of an Employees in a ROWE report having less of an increase in commute times vs. the control increase in commute times vs. the control group– choosing other times to commute other group– choosing other times to commute other than ‘rush periodsthan ‘rush periods’.’.

Tribune EditorialTribune Editorial

Putting aside the private benefits and Putting aside the private benefits and drawbacks, telecommuting is a clear drawbacks, telecommuting is a clear winner from a public policy standpoint. winner from a public policy standpoint. Every worker at home is one fewer worker Every worker at home is one fewer worker burdening the roads and public burdening the roads and public transportation systems. transportation systems.

Designing public policies and infrastructure Designing public policies and infrastructure to increase the at-home workforce can to increase the at-home workforce can have both public and private benefits. have both public and private benefits.