Death of the office and rise of the telecommuter

Death of the office and rise of the telecommuter

Summary: Contrary to what's happening in some companies, telecommuting is on the rise. The concept of the 8-to-5 office is dying an overdue death as non-traditional workplaces usurp topless cubicle farms.

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Telecommuting, teleworking, work-from-home, or whatever you want to call it, is growing along with the number of hours worked per week. But here's the bonus to companies: Employees will work more hours and for less money to be able to work from home. Some companies, such as Yahoo!, Google, and HP, have recently begun to pull workers back into offices, which is the opposite of current trends of giving workers the flexibility to work from anywhere. This shift will have some effect on current telecommute numbers but the statistics in this report are based on years prior to this change.

For example, since 2012, there has been a 20-percent increase in telecommuting in the US. In the UK, the increase is more than 30 percent in a ten-year period. Broadband internet access and smaller footprint technology, such as laptops, tablets, and other types of mobile devices have made this shift possible.

Death of the Office - US and UK telework percentages through the years.

 

Run the numbers

Other than the convenience factor, employers and employees alike share in the lower costs that telecommuting provides. Employees who telecommute spend less money on transportation, clothes, food*, and child care than their office-bound counterparts do ($2,000 to $7,000 per year — Inc. Magazine). Employers benefit by not having to maintain large offices to house workers and bear all of the costs of furnishings, maintenance, parking, and phone services ($11,000 per year per employee - Inc. Magazine). Ecologically speaking, telecommuting puts less stress on the environment too by having fewer vehicles on the road. 

Percentage of Employers offering Telecommuting by Country

The US and the UK aren't the only countries that have jumped into telework; China, India, France, Brazil, and Germany have all joined this global trend.

The days of the cubicle farm are numbered. The days of the gas-guzzling commute are shrinking as well. Companies that don't have a telecommute policy are shortchanging themselves and their employees. And there will be a "brain drain" away from companies that require employees to sit in office cubicles toward those that allow workers to telecommute. 

Telecommuting is a huge employee benefit.

The benefit is so large that, according to a 2011 Cisco study, 45 percent of workers are willing to take a smaller salary. Seventy-eight percent are willing to forego free meals (I've never had free meals at any job) and 31 percent would take fewer holidays.

According to an Inc. Magazine poll, 79 percent of employees want to work from home at least part-time. And that same poll revealed that 53 percent of telecommuters put in more than 40 hours per week, while only 28 percent of non-telecommuters did.

Would you believe that workers who work from home are more productive? They are. In fact, workers are from 11 to 20 percent more productive, when working on creative tasks. For repetitive tasks, office-bound workers are more productive. A whopping 90 percent of managers believe that workers are more productive when given the flexibility to choose when and how they work.

Traditional offices promote inefficiency

Of course, there are always the stories of a guy (or woman) who doesn't attend conference calls, doesn't connect into the corporate network — blah, blah, blah. There are more stories of those same types who faithfully plant themselves in their cubicles. There are always going to be bad workers. You just have to cull them out. Telecommuting doesn't create more of that type; it creates fewer of them according to all of the polls and surveys. 

The reasoning is that workers are grateful for the opportunity to work from home and put in more hours and do more work to compensate for not going into an office.

There are also the built-in inefficiencies to traditional office settings: other people. Loud conversations, ringing phones, people walking into your cubicle to ask "where we're going to lunch today", "Hey, my kid has this fundraiser", or "Hey, how was your weekend?", for example.

It's not that we telecommuters don't like to talk or to visit, but idle office chit chat can bring more problems than solutions. I find that conference calls that use a shared virtual room or online conference board are far more productive than in-office conferences. IT people are notorious for getting off track and making in-person conferences very painful and unproductive.

As a nation, if US employees with telecommuting jobs worked half their time from home, the national savings would be in excess of $700 billion. The savings in terms of oil would be 37 percent of Persian Gulf imports.

Happy, happy, joy, joy

Telecommuting workers are happier in their jobs. A majority are satisfied with their companies (73 percent). Fewer telecommuters look for other employment. Telecommuters also rate corporate communications higher and believe that their management has more interest in their well-being and morale.

Happy employees are stable employees. Who wants to retrain employees every few months or deal with turnover? It looks bad to customers if there are too many personnel changes. Business is all about relationship building and if your employee population rotates often, your employees and customers can't build those valuable relationships.

Happy employees->Happy customers->Happy shareholders.

DOO_3

Gray beards vs. faux hawks

If you think it's only the young, tech savvy workers that want to have an alternative work environment, you're wrong. Actually, Kenexa Research found that those aged 36 to 45 are more likely to work from home. Workers who've been with the company for more than three years are also more likely to telecommute.

It's also not the folks on the low end of the wage continuum who want to bail on the traditional office. More than 75 percent of those who work from home earn more than $65,000 per year.

Have some dog food with that corporate policy

I think it's humorous that companies that sell cloud-based solutions and tout mobility are telling their own workers that they can't work remotely. Isn't that a mixed message? The cloud, for example, enables collaboration by geographically diverse virtual teams who couldn't possibly meet in a single office.

I've spoken with the CXOs of several startups and of established companies that couldn't carry on their businesses without telecommuting workers. Startups are especially in tune with the idea of virtual teams, telecommuting, and true agility. Some of those startups couldn't have begun if traditional office space were a requirement.

It's shortsighted to place roadblocks into the paths of employees who want to be more productive, who want to cost the company less money, and who want to save themselves a few bucks in the process. 

But, for those companies who want to "buck the trend" and bring workers together in a literal sense, there are some alternatives to the traditional office that might work better than individual cubicles that provide almost no privacy. For example, real estate brokerage CBRE, conducted some experiments with "untethered" office designs that allow workers to freely roam and to set up near workers with whom they need to collaborate.

I'd like to take that experiment one step further by putting forth the following idea of open collaboration where, instead of cubicle farms, a floor would be relatively open, with conference style tables sprinkled throughout the complex, much like a cafeteria or a restaurant. Around the space there could be a few privacy rooms where individuals or groups could make phones calls or have meetings. 

I, for instance, sometimes would rather sit on the floor with my laptop on a lap desk rather than slumping over a table all the time. A more open design would afford this type of work comfort. Let's face it, this is not a "beat to fit, paint to match" world. We're all different and some people work better in non-traditonal settings. 

We can't decide that, because there are a few violators out there, we have to stop all telecommuting. That's just senseless. It's like saying that because people run Stop signs, we're now going to ban cars. The violators get tickets and the rest of us stop. That's the way it works and that's the way we want it to work. 

What do you think? What would you give up to have a flexible workplace? What do you think the workplace of the future will look like given the current trends?

*Yes, you still eat when you work from home, but you're less likely to go out to eat than if you're in an office with coworkers who "want to get out of the office for lunch." Eating at restaurants is expensive.

The Infographic was provided to me by Intuit. The original Infographic.

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Topics: Telework, Collaboration

About

Kenneth 'Ken' Hess is a full-time Windows and Linux system administrator with 20 years of experience with Mac, Linux, UNIX, and Windows systems in large multi-data center environments.

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12 comments
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  • what is telecommuting?

    Is it working from home 9-6, or is it working from home 8-10 after having come from work after 6?
    I am not allowed the former, and do not want the latter.
    ForeverSPb
  • @ForeverSPb

    Well, in IT, you have to work from somewhere more than 8 hours per day usually because you have to be at work from 8 to 5 and then all changes are performed from midnight to 6AM.
    khess
  • Playing with numbers...

    Sorry - these numbers actually how irrelevant telecommuting is:
    - in 32 years (from 1980 - way before internet, before even breakup of the Bell System) every day telecommuting less than doubled on percentage basis. In 1980 electric typewriter in the office was considered technology. And as far as 24% telecommuting some hours - that happened before: for some it was called a "library day".
    - in 10 years UK telecommuter number increased by 700,000... And workforce increased by how much? It's 10% now, what was it in 2001 in %? UK workforce only had to increase by 7m in 10 years for % stay the same.

    Yeah - not seeing increases...
    vgrig
    • Security and Privacy

      Everyone wants to telecommute, at least partially. That is, until the cat starts walking accross the keyboard or your wife starts yelling at you while you are on Skype. As someone pointed out, in technology, you need to make changes late at night. You need to do things late so as not to ruin uptime statistics or affect users.

      The big worry is governed data. That is, HIPAA/HITECH, CJIS, PCI-DSS and others. Many companies do not want this data out of the door to the company. Imagine someone takes home data on a portable device and that data is lost or stolen. Too many employees may just say "oh, well" and ignore it but, if that data is YOUR medical record or your credit card number and social security/tax ID, you would be very upset. That;'s the point. There is a disconnect between the person who REALLY owns the information (the comsumer/client) and the worker who thinks the data is his to do whatever he wants with. Until this divide is closed, most companies do not want employees working from home, especially after they receive a $10 million fine for losing data.
      hforman@...
  • Not representative

    "More than 75 percent of those who work from home earn more than $65,000 per year."

    Translation: They're mainly highly skilled folks who are probably professionals and most work in some sort of administrative or managerial capacity. Just about all of them work in a "services" area such as accounting, marketing, advertising, research. Most of them are probably "staff" workers as opposed to "line" workers. (In HR terminology, "line" workers are directly involved in providing the company's product, and "staff" workers do everything else. In a CPA firm, accountants are "line" workers but in other companies they are "staff". The same thing with lawyers at a law firm versus in-house lawyers at a manufacturer or retailer.)

    Since the vast majority of U.S. workers earn less than $49k a year, the numbers are simply not representative.
    Rick_R
  • I've been teleworking part time for years.

    I could do it full time but I do like to come into the office for part of the day to interact with people.

    My company is a big advocate of teleworking. The people I work with are located throughout the world. Not one person I work with is located in the same office I am. Even if I am in the office I am, in a way, telecommuting. By permitting this type of work environment my company can hire the best people. Many teams are composed of people working throughout the world. And, as you said, the flexibility afforded by working remotely is a big incentive. Despite numerous inquiries by head hunters I've not given any thought to leaving as the flexibility is a huge perk.
    ye
  • A Mix

    What works best is a mix of in office and telecommuting. There does develop a disconnect when you do not see people face to face, ever. I had an issue with one of our project people who telecommutes as he lives out of state. This went on for months till he was travelling and came into the office. We went out and had lunch together and a few beers and now no issues.

    Its really the relationships that face to face helps. I telecommute about 50% of the week.
    Rann Xeroxx
  • Hey, wait a minute!

    "If you think it's only the young, tech savvy workers that want to have an alternative work environment, you're wrong. Actually, Kenexa Research found that those aged 36 to 45 are more likely to work from home."

    Wait a minute! I'm in that age range...and I've been considering myself a "young, tech-savvy worker"....
    Techboy_z
  • The Cloud-Based Irony

    Ken, you're absolutely right about how ironic it is that some of the companies that sell cloud-based technology won't allow their own employees to telecommute. That's almost laughable -- unless you work for one of those companies, of course. I've been a full-time telecommuter for years, and I've managed remote teams as well. The truth is that cloud-based technology is making this easier and easier all the time, for both employees and workers. Skype, Dropbox, GoToMeeting, TeamViewer -- the list is long. There's even a cloud-based software called MySammy (www.mysammy.com) that actually measures remote workers' productivity levels. Given this kind of technology, there's no reason why any company should hesitate to allow their employees to telecommute.
    SmallBusOwner
  • Nothing but Polls and Survey data...

    All the "data" in this article come from either a survey or poll (including the 2011 Cisco "study"). This means the data is completely irrelevant.

    Show me a *real study* of how productivity is increased by working from home? Where are the productivity studies anyway?
    For the most part, worker happiness doesn't mean much to the company's bottom line.

    While I might agree that it could lessen the ecological damage to the environment (assuming workers stay at home the entire duration of work hours), there's a reason why the big companies are shutting down the telecommute option for most of it's work force. The office is typically free of the distractions commonly found at home: the nagging wife, crying child, barking dog, noisy neighbor, etc. all distract us from work. I seriously doubt the common worker has the work-ethic to focus on his/her tasks while at home while these distractions exists.
    LoreZyra
  • Telecommuting on the go

    Well, I guess telecommuting/work from home/outsourcing jobs will soon be the future in the workforce. If the government will not find ways to balance the market (services and products) then I guess there will be more companies who will likely join those who have done outsourcing already. However, to those who are operating small businesses and would want to try outsourcing, perhaps you can try freelancing as an option. There are sites like Staff.com and Odesk which provide staff from other countries like the Philippines and India. Staff.com, for example, is a great site that offers full time / part time hires around the world
    johne2
  • Telecommuting is our future

    I think it's an obvious direction of the future workforce - whatever the opposition it has. It's inevitable, and in fact, the sooner the companies realize it and start new policies - the better. We at Goemployed.com are promoting the idea of telecommuting and please do not mix it with freelance. We are talking about traditional jobs, which do not require special machinery or equipment and physical presence of the employee at specific place (for eg. doctor).
    Ken gave an excellent overview of all the benefits both sides, employee and employer get from telecommuting. It's a win-win situation, which will result in very substantial cost reductions for the employers and will increase efficiency, productivity as well as reduce stress and overtime for the employees. And it will be perceived as an additional benefit to their package.
    With telecommuting we can fight poverty at a global scale – not only by charities and donations, which are a one-time action and they can’t improve somebody’s life in a longer term. We provide the opportunity of employment to the people in most remote locations, as a result reducing the overpopulation trend in the big cities and dyeing of the towns, villages and even countries!
    Workplace of future is a virtual office. And those office buildings could be used for apartments for the employees!
    Goemployed