Telework in the UK: The Bottom line benefits

The Shifting Nature of Work in the UK
Bottom Line Beneﬁts

Kate Lister, Tom Harnish

Sponsored by Citrix Online

© 2011 Telework Research Network – All Rights Reserved
Telework Research Network

The Shifting Nature of Work in the UK
Bottom Line Beneﬁts


Introduction

‣  Deﬁnitions
‣  Sources
‣  Assumptions
‣  Variables
‣  Beneﬁts


BACKGROUND

•  500 case studies, reports

•  Top virtual employers, experts, advocates,
naysayers

•  Cited in Harvard Business Review, Wall Street
Journal, etc.


SOURCES
•  UK government sources: Department for Work and Pensions,
Department for Transport, Ofﬁce of National Statistics, Department of
Trade and Industry.

•  Flexibility.co.uk, Wisework Ltd, UK Telework Association, Enterprise
Nation

•  AON, Kenexa Research, British Chambers of Commerce, Confederation
of Business Industry, Chartered Institute of Personnel and Development,
Equality and Human Rights Commission, Eurofound, European Union:
European Social Fund, Forrester Research Inc, McKinsey Global Institute,
Orange Future Enterprise Coalition, Royal Automobile Club Foundation,
Trade Union Congress


GENERAL
ASSUMPTIONS
‣  2 days per week
‣  50 per cent of workforce
‣  67 per cent willing
‣  75 per cent reduction in driving


VARIABLES
✓ Total
#
of
employees
absences

✓ Current
#
of

Teleworkers
✓ %
Reduc9on
in
absences

✓ Days/week
of
telework
✓ %
turnover

✓ Addi9onal
teleworkers
✓ %
Reten9on

✓ Roundtrip
miles
to
work
✓ Produc9vity

✓ Roundtrip
commute
in
✓ Average
annual
earnings

minutes
✓ Other
company
savings

✓ Other
employee
Savings
✓ %
Who
could
work
at
home

✓ £
per
litre
of
petrol
✓ %
Who
want
to
telework

✓ %
teleworker
oﬃces
that
✓ %
Daily
travel
reduc9on

are
eliminated
✓ Parking, Food, Work

✓ Cost/kWh
of
electricity
Clothes

✓ Cost/oﬃce
✓ Other
Individual
Savings/
✓ Cost
of
losing
an
employee
Year

✓ Cost
of
unscheduled
✓ Day
Care
Costs


POLE


EMPLOYER
BENEFITS
•  Productivity

•  Real Estate

•  Absenteeism

•  Retention

•  Other


PRODUCTIVITY
•  Fewer Interruptions

•  More Effective Time
Management

•  Empowerment

•  Flexible Hours

•  More Hours


Annual Increase in Productivity!

Twice Weekly
50
100
500
UK
Workshifting

Productivity
Increase
£102,713
£205,426
£1,027,130
£15.3 b


REAL ESTATE

•  Average office cost = £4,292/year (based on a 2007
government report) though London offices can run
2-3 times higher.

•  Reduction with 2 day a week home working = 15 per
cent (based on a 2007 government report)

•  Electricity savings = 4,400 kWh per person, per year
(based on two corroborating studies by Global
Environment Technology Foundation and Sun
Microsystems)

•  Extra home office energy is shown as a cost in the
Employee Savings section


Annual Savings In Real Estate & Energy!

Twice Weekly
50
100
500
UK
Workshifting

Real Estate
& Energy Savings
£27,810
£55,621
£278,106
£4.2 b


ABSENTEEISM
Experience less stress;

• 

•  Less exposer to sick co-workers;

•  Exposed to fewer occupational and
environmental hazards;

•  Avoid driving—the most dangerous
part of the day;

•  Able to handle personal appointments
without losing a full day s work

•  More time for exercise.


Annual Savings Due To Reduced Absenteeism!

Twice Weekly
50
100
500
UK
Workshifting

Absenteeism
Savings
£21,763
£43,525
£217,626
£3.2 b


RETENTION
•  Option to work at home top non-
ﬁnancial beneﬁt desired by employees

•  Expands the talent pool beyond
geographic boundaries

•  Provides access to disabled workers

•  Offers alternatives that would have
otherwise kept parents and senior
caregivers out of the full-time workforce

•  Appeals to aging workers


Annual Savings Due To Reduced Turnover!

Twice Weekly
50
100
500
UK
Workshifting

Turnover
Savings
£1,926
£3,852
£19,262
£287 m

More realistic?
£60,000
£120,000
£601,000
£9.0 b


OTHER
•  Improved Continuity of Operations
•  Improved community citizenship
•  Offers alternative to off-shoring
•  Avoids environmental sanctions
•  Avoids city access fees
•  Reduces overtime and overstafﬁng
•  Offers easier 24/7 global coverage
•  Reduces potential for discrimination
•  Weeds out weak players
•  Improves work-life balance
•  Avoids of local labor burnout
•  Equalizes personalities
•  Allows local knowledge hires


EMPLOYER CONCERNS

•  Control

•  Productivity

•  Technology

•  Security

•  Costs

•  Culture


EMPLOYER CONCERNS

•  Control!

•  Productivity

•  Technology

•  Security

•  Costs

•  Culture


EMPLOYER CONCERNS

•  Control

•  Productivity!

•  Technology

•  Security

•  Costs

•  Culture


EMPLOYER CONCERNS

•  Control

•  Productivity

•  Technology!

•  Security

•  Costs

•  Culture


EMPLOYER CONCERNS

•  Control

•  Productivity

•  Technology

•  Security!

•  Culture


EMPLOYER CONCERNS

•  Control

•  Productivity

•  Technology

•  Security

•  Culture!


POLE POLL


EMPLOYEE
BENEFITS

•  Time

•  Money


TIME

•  54 minutes playing in trafﬁc or
riding public transportation

•  10 per cent spend more than
2 hours


Time Savings / Year (equivalent based on 8 hour workday)!

Scenario
Low
Avg.
High

Time
work days / year / person
8.5
11
21.5


MONEY - £

‣  Transportation

‣  Food

‣  Clothes


Workshifter Savings / Year by Mode of Travel!
(including fuel where appropriate)!

Car
Moto
Bike
Coach
Rail
Walk

Low
£720
£627
£475
£437
£563
£220

Mid
£1,049
£955
£803
£765
£1,280
£548

High
£2,883
£1,307
£1,154
£1,117
£2,021
£900


AND MORE

Daycare / Eldercare
• 

•  Serendipity purchases

•  Ofﬁce gifts

•  Vehicle insurance

•  Other incidentals

•  Live in less expensive area


EMPLOYEE CONCERNS

•  Discipline

•  Space

•  Loneliness

•  Co-Worker Jealousy

•  Advancement

•  Overworking


COMMUNITY
BENEFITS
•  Petroleum imports

•  Greenhouse gases

•  Trafﬁc and accidents

•  Other


PETROLEUM
IMPORTS
•  Save over £750 million
a year in imported oil

•  Reduce oil imports by
the equivalent of two-
thirds of the UK s Sub-
Saharan African
imports


GREENHOUSE
GASES
•  Equivalent to taking 2.5
million cars off the road

•  Reduce transportation
sector greenhouse gas
by more than 4 per
cent


TRAFFIC AND
ACCIDENTS
•  90 per cent said poor reliability of
road networks had reduced
productivity

•  75 per cent complained that
transport delays had a strong or
moderate impact on the ability of
their staff to get to work on time

•  75 per cent feel their staff arrived at
work stressed


Other Community
Beneﬁts

•  Revitalize cities by reducing trafﬁc—a disincentive to visitors

•  Improve emergency responsiveness

•  Provide portable work options for military families

•  Raise the standard of living in rural and disadvantaged areas

•  Reduce terrorism targets of opportunity

•  Lower healthcare cost

•  Provide highly educated talent access to jobs that maximize
their potential

•  Promote inbound talent migration without adding to local
population

•  Further reduce travel through widespread use of virtual
technologies

© Telework Research Network

SUMMARY
Total Impact!
Twice Weekly
50
100
500
UK
Workshifting

Employer
£154,212
£308,425
£1,542,124
£23.0 b

Employee
£52,448
£104,897
£524,483
£7.4 b

Community
£14,216
£28,431
£142,156
£2.1 b

Overall
£220,876! £441,753! £2,208,763! £32.5 b!


Kate Lister
kate@teleworkresearchnetwork.com
Tom Harnish
tom@teleworkresearchnetwork.com

+01-760-703-0377

TeleworkResearchNetwork.com

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Telework in the UK: The Bottom line benefits

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