TITRE DE LA PRESENTATIONSmart Work Centres: Benefits for Employees, Employers and Municipalities

Alise VitolaRiga Technical University

Latvia

TITRE DE LA PRESENTATION

Why promote smart work in rural areas?

Notable share of global GDP consists of immaterial (digital) content

ICT allow to work anytime and anywhere

The “geographic paradox” - investments in digital economy tend to be located in large urban centres

TITRE DE LA PRESENTATIONIn UK a working population of 29 million commuters daily:• spent >20 million hours travelling to and from work• lost at least an hour of their time• caused production losses >266 million pounds

In 2010

More than 740 million people migrated within their country, almost 4 times the extent of international migration

TITRE DE LA PRESENTATION

Why Smart Work?Personal reasons:• Time economy• Flexible work arrangements• Work/life balance• Residing outside cities Economic reasons:

• Increase in productivity• Reduction of costs (transport,

real estate etc.)• Recruitment and retention of

staff• The image / reputation

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• More than 42% of working adults willing to give up some portion of their salary for more flexibility at work

• Working men 2 times more likely to give up >10% of their salary (12% vs. 6%)

• 18-34 age group is 3 times more likely to give up >10% of their salary (15% vs. 5% among working adults aged 35+)

Nation-wide survey in US (2012)

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• Flexible staffing firm in US – 100% virtual work force• Established in 2005 by Allison O’Kelly, Harward Business

School graduate and a mother of 3 sons• Grown to 17 franchises

• > 50 000 candidates• Industries: accounting, legal, marketing, HR, finance,

management etc.

• Several awards since 2006: Moving into the Future Award (2007), Entrepreneurial Success story in Atlanta (2009) etc.

An example

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• New building in 2008• No assigned desks - work anywhere in the building• Layout of the building - to maximize communication

and collaboration• Encouraged to work more from home & allowed to

work anytime• A weekly 1:1 with their manager - a physical or virtual

meeting

Microsoft Netherlands

An example

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• Increased productivity by 25%• Won “Great Place to Work” award in 2009, 2010 and

2011• Employee satisfaction rose from 5/10 in 2008, to 8/10

in 2011• Sick leave days are down to 1,5% from 2,5%• Increased market reputation• Increased Employees’ mobility• Reduced real estate costs by 30%

Measurable improvements

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Why SmartWork Centre?

Technological benefits:Quality working space & technologiesData protection

Social benefits:MotivationSocialisation and mentoring

Cost reduction:Costs of maintaining the equipmentEnergy costs

Other:NetworkingAdditional services

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• Small village (70 inhabitants) 40 km from the capital city Tallinn

• Established by 5 local women, now 12 women working

• Women share their knowledge, jobs and childcare duties & compete as a unit in the labour market

• Communication and social life – events, projects, courses for children, consultations to local officials etc.

An example

Kõnnu SWC, Estonia

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Business allocation

New jobs

Increase in the attractiveness

Critical mass (innovation & productivity)

Increase in the number of inhabitants

Fiscal effects (infrastructure

& services)

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Tacit knowledge & face-to-face communication

Infrastructure, skills and knowledge

The rigidness of labor market inrural areas

The adaptation of behaviour

Main challenges

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Awareness campaign Get Online Week in Estonia

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• How Flexible Are You? Business Benefits of Flexible Staffing (Mom Corps): http://www.workshifting.com/2012/05/business-benefits-of-flexible-staffing.html; http://www.momcorps.com/docs/Mom_Corps_press_and_media.pdf

• How Microsoft Netherlands Reinvented the Way of Work (really): http://www.managementexchange.com/story/microsoft-netherlands

• Launching of a network of telework centres to promote employment of risk groups: http://www.smartwork.ee/en/smart-work-centres

• Linda Gratton (2011). The Shift The future of work is already here

Links